Section 179

SECTION 179 AT A GLANCE

2023 Deduction Limit = $1,160,000
This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2023, and the equipment must be financed/purchased and put into service by the end of the day, December 31, 2023.

2023 Spending Cap on equipment purchases = $4,050,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive".

Bonus Depreciation: 80% for 2023
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.

CALCULATE YOUR TAX DEDUCTION

Cost of Equipment:

Section 179 First Year Write-Off:

80% Bonus Depreciation:

(On any remaining amount above $1,000,000)

Normal First Year Depreciation:

Total First Year Deduction:

Tax Savings on Equipment Purchase:

(Assuming a 35% tax bracket)

Lowered Cost of Equipment after Tax Savings:

If you have any questions regarding the Section 179 tax deduction or would like more information, please contact us at sales@hermance.com / sales@hermance.com