Tax Section 179 - example

Our 2024 Section 179 Tax Deduction Calculator helps you understand how tax deductions can save you money when buying equipment for your business.

Let's say you're buying equipment for $190,000. With a 35% tax bracket, you can deduct the entire $190,000 from your taxes in the first year. This means you'll save $66,500 in taxes, effectively lowering the cost of the equipment to $123,500 after tax savings.

In another example, when buying more expensive equipment for $1,300,000, you can still deduct a significant portion of this cost – $1,200,000 – from your taxes in the first year. Additionally, there's another deduction called bonus depreciation, which gives you an extra $48,000 deduction. These deductions add up to huge tax savings of $443,800, making the equipment effectively cost $856,200 after tax savings.

By using tax deductions like Section 179, you can significantly reduce the amount you pay in taxes, making it more affordable to buy equipment for your business.

*** Utilize Tax Section 179 benefits before depreciation rates decrease:

• 2024: 60% bonus depreciation
• 2025: Decreases to 40%
• 2026: Further reduction to 20% 

Plan ahead and save on your equipment investments in 2024.