Can I Claim Section 179 Equipment Deduction as a Business Expense in United States?
Yes — under IRC Section 179, US businesses can immediately expense up to $1,160,000 of qualifying equipment placed in service in 2024 ($1,250,000 in 2025). Phase-out begins at $2.89m of total purchases (2024). Bonus depreciation phasing down: 60% in 2024, 40% in 2025, 20% in 2026.
What Internal Revenue Service (IRS) says
Section 179 lets a taxpayer elect to expense the cost of qualifying property (equipment, off-the-shelf software, qualified improvement property) in the year placed in service, up to annual limits indexed to inflation. The deduction cannot exceed business taxable income (no loss creation).
When you can claim
- Computers, laptops, phones, equipment under the annual cap
- Off-the-shelf software (Section 179 eligible)
- Qualified Improvement Property (interior commercial improvements)
- Heavy SUVs/trucks over 6,000 lb GVWR (special $30,500 cap in 2024)
When you cannot claim
- Property used 50% or less for business
- Buildings and structural components
- Inventory and property held for sale
- Cars below 6,000 lb GVWR (depreciation limits apply)
Good to know
Important: Bonus depreciation (Section 168(k)) is phasing out: 60% in 2024, 40% in 2025, 20% in 2026, 0% in 2027. Section 179 has no phase-out at the entity level.
Related expenses
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