Section 179 continues working for you in 2023 (with some important changes.)
Section 179 underwent big changes in 2023, which makes learning about this important tax deduction vital to any business. This is retroactive to 2012.
First, some good news: Not only has Section 179 returned for 2023, it’s also been enhanced in the passage of HR 5279. The Small Business Jobs and Credit Act of 2023. In essence, the limits for Section 179 have been increased – you can now deduct up to $500,000 of equipment, software, and/or vehicles. (new equipment)
This is a substantial increase, and has many business owners excited, because with these new limits (and reinstating of the bonus 50% depreciation), might be far better than many thought in terms of bottom line.
2023 Section 179 Allowance Calculator
And to help you calculate your savings, we provided the following calculator for Section 179 deductions in 2023. This calculator is fully updated with the current limits for the 2023 tax year, and gives you a clear picture of just how much Section 179 can save you this year.
| Cost of Equipment: | Calculate |
| Section 179 Deduction: | |
| 50% Bonus Depreciation Deduction: (on any remaining amount above $500,000) |
|
| Normal 1st Year Depreciation: | |
| Total First Year Deduction: | |
| Cash Savings on your Equipment Purchase:(assuming a 35% tax bracket) | |
| Cash Savings on your Equipment Purchase: |
* The lease calculator and tax example scenarios are intended for estimate purposes only. The estimated tax savings may be based on assumptions that do not apply to your specific business tax situation. Please consult your tax advisor to determine the full tax implications of leasing equipment. Additional information on business taxes can be found at www.irs.gov.