Section 179 & Bonus Depreciation Calculator
Last updated: March 19, 2026
Calculate your 2026 first-year deduction. Section 179 limit: $1,220,000 · Bonus depreciation: 60%
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Phase-out begins at $3,050,000
How Section 179 & Bonus Depreciation Work in 2026
Section 179 (2026)
- ✓ Deduction limit: $1,220,000
- ✓ Phase-out starts at: $3,050,000
- ✓ Requires active business income
- ✓ Applies to new & used property
- ✓ SUV cap: $30,500
- ✓ Must be placed in service by Dec 31
Bonus Depreciation (2026)
- ✓ Rate: 60% (down from 80% in 2023)
- ✓ No income limitation
- ✓ Can create a net operating loss
- ✓ Applies to new & used property
- ✓ Applied after Section 179
- ✓ Dropping to 40% in 2027 — act now
Strategy: Stack Both Deductions
The optimal strategy is to take Section 179 first (subject to income limits), then apply 60% bonus depreciation to the remaining basis. This maximizes your first-year deduction, especially for assets above the Section 179 cap.