{"id":8495,"date":"2022-09-15T08:00:24","date_gmt":"2022-09-15T12:00:24","guid":{"rendered":"https:\/\/foundationsoft.com\/?p=8495"},"modified":"2025-09-10T12:54:42","modified_gmt":"2025-09-10T16:54:42","slug":"section-179","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/section-179\/","title":{"rendered":"How to Save With the 2025 Section 179 Deduction [Calculator Tool]"},"content":{"rendered":"

If you haven\u2019t heard of the Section 179 Deduction, you may have missed out on some tax savings in recent years. Because of provisions in the U.S. Internal Revenue Code (that\u2019s what the IRS uses) and updates from the Tax Cuts and Jobs Act, you might be able to deduct the full price of equipment or software you buy for your business in 2025.<\/p>\n

<\/span>What Is the Section 179 Deduction?<\/span><\/h3>\n

Section 179<\/strong> allows you to take the cost of certain types of business property and subtract up to $2,500,000 of it from your taxable income for the year you purchase it. Currently, eligible properties can include equipment, software or buildings. However, the deduction does reduce one dollar for every dollar over $4,000,000. So the more a business spends over $4,000,000 on equipment, the more their $2,500,000 deduction starts to go down. Try out our 2025 calculator below to see how this works.<\/p>\n

\"Get<\/a><\/p>\n

You might be asking, \u201cWhat about property costs between<\/em> $2,500,000 and 43,000,000 dollars?\u201d That\u2019s where Bonus Depreciation <\/strong>comes in. For qualifying property, you would still deduct just $2,500,000. But while Bonus Depreciation isn\u2019t technically part of Section 179, it can often be used as \u201cPart 2\u201d of Section 179 savings. When it\u2019s applied in 2025, businesses get to write off an additional 100% of whatever they spent on new equipment over that $2,500,000 limit. And that can include money spent over $4,000,000!<\/p>\n

<\/span>Section 179 Deduction Changes<\/span><\/h3>\n

The Section 179 Deduction isn\u2019t new, but it has changed. \u201cSection 179\u201d itself just refers to a section of the Internal Revenue Code \u2014 and there are almost 10,000 sections! So it wasn\u2019t just tacked on by the last Congress. Until the Protecting Americans from Tax Hikes Act of 2015 (PATH), however, it had been subject to year-to-year amendments and stimulus acts. PATH \u201cpermanently\u201d raised the deduction limit of $500,000 and brought back Bonus Depreciation.<\/p>\n

That said, the Tax Cuts and Jobs Act of 2017 (TCJA) expanded the newly stabilized Section 179 provisions for 2018. TCJA raised the deduction and phase-out limits for businesses from just $500,000 and $2 million, respectively. Both numbers are scheduled to increase with inflation. It also increased Bonus Deprecation, which in 2017 deducted only 50%, and added to the definition of qualified property.<\/p>\n

<\/span>Section 179 Deduction Savings Calculator<\/span><\/h3>\n

To see how Section 179 savings can work for 2025, enter the amount you might spend on software or equipment, and see the cash you might save on your purchase.<\/p>\n\r\n

\r\n\t

<\/span>Section 179 Deduction Savings Calculator<\/span><\/h2>\r\n\t\r\n\t