Section 179 Deduction Calculator
Run the Form 4562 Part I sequence: annual cap, investment phase-out, taxable-business-income limit, and carryover.
Allowed Section 179 deduction
$120,000Reduced annual limit
$2,560,000Carryover to next year
$30,000What this tool covers
Calculation scope
- Models both the annual cap and the separate investment phase-out.
- Applies the active-trade-or-business income limit after the phase-out.
- Tracks the unused amount as a planning carryover.
Frequently asked questions
Can Section 179 create a business tax loss?
The deduction is generally limited to aggregate taxable income from the active conduct of trades or businesses. An amount blocked by that income limit generally carries forward.
Does the phase-out apply per asset?
No. The investment phase-out uses the total cost of qualifying Section 179 property placed in service during the tax year, not just the asset entered on this page.
Is Section 179 the same as bonus depreciation?
No. Section 179 is elected asset by asset, has dollar and income limits, and is taken before bonus depreciation. Bonus depreciation generally applies by property class unless the taxpayer elects out.
Sources
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