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 competitive marketplace? With IRS Section 179 and the bonus depreciation deduction, you may be able to deduct the entire cost of your investment when you file your 2023 taxes.

Here’s How Much You Can Save

With Section 179 you can deduct up to $1,160,000 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.

This 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%. To take full advantage of bonus depreciation, businesses will need to acquire qualifying equipment and put it into service by December 31st.

Use our Section 179 Savings Calculator to see firsthand how taking advantage of Section 179 can help you manage your 2023 taxes.

Section 179 Tax Savings Calculator

Input Equipment Cost:

Section 179 Saving Results:

Section 179 Deduction:

80% Bonus Depreciation:
(on remaining amount exceeding $1,160,000)

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*:

Get in Touch

To learn more about Section 179 and how LEAF can build you a custom payment plan that is right for your business, please contact your LEAF Account Champion today.

Get in Touch

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.