- Taxpayers can deduct the full cost of equipment from their 2019 taxes up to $1,000,000, with a total equipment purchased for the year threshold of $2,500,000. New and used equipment is eligible for expensing.
- Equipment must be purchased and placed in-service during 2019 to qualify.
- Tax payers can take both Section 179 and Bonus Depreciation allowances, but Section 179 must be applied first, and any amount over the $1,000,000 limit may then be taken in Bonus Depreciation.
2019 Section 179 and bonus depreciation example calculation
|Total 2019 equipment investment||$750,000|
|Section 179 deduction limit||$750,000|
|Bonus depreciation deduction (100% in 2019)||$0.00|
|Normal first year depreciation||$0.00|
|Total first year deduction||$750,000|
|Potential tax savings in first year (assuming a 35% tax rate)||$262,500|