IRS Section 179 Tax Deduction Calculator

What is it and how can you take advantage?

Essentially, Section 179 of the IRS Tax Code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means if you buy or finance a piece of qualifying equipment, you can deduct the full purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Deduct new and used equipment and packaged software purchases.


Purchase Price

Assumed Tax Rate

Section 179 Deduction (2023 Maximum of $1,160,000)

Bonus Depreciation Deduction (80% in 2023)

Total Year One Deduction

Reduced Cost of Purchase

Cash Savings from Purchase