Section 179 depreciation deduction

Under current federal law, 100% bonus depreciation is available for qualifying property acquired and placed in service after January 19th, 2025.

Section 179 is also available with a 2026 federal deduction limit of two point five six million, subject to its own limitation and a phase out beginning when qualified property placed in service begins to exceeds four point zero nine million.

These are substantial tax provisions, but I want to start somewhere else.

A tax deduction is not a reason to buy something your business doesn't need.

The asset generally needs to be ready and available for its intended use.

So buying equipment on December 30th that sits unopened in a warehouse until January, it really isn't the kind of year-end planning I want to rely on.

Section 179 is another way businesses may expense qualifying property rather than depreciate the entire cost over the normal recovery period.

For tax years beginning in 2026, the federal subsection 179 limit is two point three six million, with a deduction beginning to phase out when qualifying property placed in service exceeds four point zero nine million.