Section 179: How to Get the Most Out of the Section 179 Deduction

Need equipment and technology to move your business forward in today’s quickly changing marketplace? With IRS Section 179 and the enhanced bonus depreciation deduction, you may be able to deduct the entire cost of your investment when you file your 2022 taxes.

With Section 179, you can deduct up to $1,080,000 of qualifying equipment in the year you acquire and put it into service. Bonus depreciation can then be used to deduct any remaining amount over the Section 179 limit.

Beginning next year, enhanced bonus depreciation begins to phase out, decreasing from 100% in 2022 to 80% in 2023. Then in 2024, the rate drops to 60%. In 2025, bonus depreciation is scheduled to return to 40%. To take full advantage of enhanced bonus depreciation, businesses will need to acquire qualifying equipment and put it into service by December 31st.

You can use our Section 179 Savings Calculator to see firsthand how taking advantage of Section 179 can help you manage your taxes. For more information, see additional Section 179 resources and FAQs below.

Section 179 Tax Savings Calculator

Input Equipment Cost:

Section 179 Saving Results:
Section 179 Deduction:
100% Bonus Depreciation:
(on remaining amount exceeding $1,080,000)
Regular First Year Depreciation Deductions:
(assuming five-year property)
Total First Year Deduction:
Tax Savings on Your Equipment Purchase:
(assuming a 21% tax bracket*)
Cost of Equipment After Tax Savings*:

For a quick overview of Section 179, view the infographic provided here.

View the Infographic

For more details, take a look at LEAF’s whitepaper on this important and powerful tax saving benefit.

Get It Now

Still have more questions? Download our full Section 179 How to Guide.

View the How to Guide

Get in Touch

Contact us today to learn more about Section 179 and how LEAF can build you a custom payment plan that is right for your business at 800.819.5556.

Terms and Conditions: All applications are subject to credit approval. LEAF finances equipment only for business purposes and not for personal, family, or household use. The above is for informational purposes only and is not intended as tax or legal advice. Always check with your accountant or tax advisor to verify your eligibility for any tax deduction.