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Bonus vs Section 179 Calculator
§179 lets businesses immediately expense qualified property up to $1.16M (2024 limit) but is capped at business taxable income. Bonus depreciation has no income cap but is phasing down: 60% (2024), 40% (2025), 20% (2026), 0% (2027). Most taxpayers stack §179 first, then bonus on the remainder. This calculator compares both.
§179 deduction
$120,000
Bonus depreciation deduction
$24,000
§179 tax saved
$38,400
Bonus tax saved
$7,680
Best path
§179 — fully deductible
How the math works
§179 lets businesses immediately expense qualified property up to $1.16M (2024) limited by business income. Bonus depreciation phasing down: 60% (2024), 40% (2025), 20% (2026), 0% (2027). Most taxpayers stack §179 first, then bonus on the remainder.
Real-estate-specific bonus depreciation requires cost segregation to identify 5/7/15-year property within a building (carpet, appliances, land improvements).
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Bonus vs Section 179 Calculator is built to give a quick, browser-based estimate for bonus vs section 179. §179 lets businesses immediately expense qualified property up to $1.16M (2024 limit) but is capped at business taxable income. Bonus depreciation has no income cap but is phasing down: 60% (2024), 40% (2025), 20% (2026), 0% (2027). Most taxpayers stack §179 first, then bonus on the remainder. This calculator compares both. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the bonus vs section 179 result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this bonus vs section 179 estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter qualified property cost.
- Enter business taxable income (caps §179).
- Choose tax year (drives bonus %).
- Enter marginal tax rate.
- Read both deduction amounts and tax saved.
Frequently Asked Questions
Why §179 first?
§179 is more flexible — you choose how much to expense (up to limit). Bonus is mandatory unless you elect out by class. Layer §179 first, then take bonus on remainder.
Real estate eligibility?
§179 doesn't apply to real property generally. Bonus depreciation applies to 5/7/15-year property within a building (identified via cost segregation). Bonus also covers QIP (qualified improvement property).
Bonus phase-out?
Through 2026: 60%/40%/20% then 0% in 2027 unless extended. Significant pressure to extend full bonus depreciation in tax legislation.
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