See what that equipment really costs you.
Section 179 lets you write off the full purchase price of qualifying equipment in the year you put it to work. Enter your numbers below and see the deduction, your estimated tax savings, and what you are actually out of pocket this year.
New or used both qualify, as long as the equipment is new to your business.
Pass-through entities (LLC, S corp, sole prop) use the owner's individual rate. Not sure? 24% is a reasonable middle estimate.
Nothing out of pocket, and you still deduct the full $75,000 and save $18,000. The deduction is based on the purchase price, not on what you put down, so it is identical whether you finance or pay cash.
Estimates for illustration only, based on 2026 federal limits. Actual deduction depends on taxable income, entity type, business-use percentage, and state rules. Confirm with a CPA.
Build your deal → Start an applicationThree things worth knowing.
Deduct it all at once
Normally you depreciate equipment a little at a time over several years. Section 179 lets you deduct the entire purchase price in the year you put the equipment to work instead.
For 2026 the cap is $2,560,000.
Financing changes nothing
This is the part most buyers miss. A financed purchase earns the exact same deduction as a cash purchase.
Finance at $0 down and you still write off 100% of the price. The purchase price stays in your working capital and the whole deduction is still yours this year.
Delivered, not just ordered
The equipment has to be in your possession and actually in use by December 31 to count for that tax year.
Signed paperwork on a machine that has not shipped does not qualify. If you are buying late in the year, lead time matters as much as the purchase date.
Deduct up to $2,560,000, with the phase-out beginning at $4,090,000. Above the cap, 100% bonus depreciation covers the remaining basis, and it is a permanent part of the tax code now, not a phase-down schedule.
If it is tangible business equipment, it probably counts.
Section 179 covers a wide range of tangible property you use in your business more than 50% of the time. A sample of what we finance:
Construction & heavy equipment
Excavators, loaders, crushers, screening plants, attachments.
Material handling
Forklifts, reach trucks, racking, conveyors, dock equipment.
Trucking & transportation
Box trucks, tractors, trailers, lowboys, service bodies.
Medical, dental & vision
Chairs, operatory lights, imaging, OCT, exam lane equipment.
Manufacturing & machine tools
CNC machines, presses, packaging lines, production equipment.
Technology & software
Servers, workstations, networking, off-the-shelf software.
Office equipment & furniture
Desks, seating, copiers, phone systems, conference AV.
Restaurant & food service
Ovens, refrigeration, prep lines, POS systems, smallwares.
Commercial laundry
Washers, dryers, vended equipment, payment systems.
Agriculture & landscaping
Tractors, implements, mowers, chippers, forestry equipment.
Auto repair
Lifts, alignment racks, diagnostic equipment, tire machines.
Audio visual & drones
Production gear, displays, UAV systems, camera packages.
The ones we actually get asked.
Can I deduct equipment I financed?
Yes. Section 179 applies to the full purchase price no matter how you paid for it.
Finance at $0 down and you still deduct 100% of the price in the year it is placed in service. That is why the deduction frequently exceeds the cash that actually left your account that year.
What is the difference between Section 179 and bonus depreciation?
Section 179 is elective and capped at $2,560,000 for 2026. It cannot create or increase a net operating loss, so it is limited to your taxable income.
Bonus depreciation is 100% with no dollar cap and it can create a loss. Most businesses take Section 179 first, then apply bonus depreciation to whatever basis is left over.
What is the deadline?
The equipment must be purchased and placed in service by December 31 of the tax year.
Placed in service means delivered, installed where required, and ready to do its job. Ordering in December for January delivery pushes your deduction into the following year.
Does my business need to be profitable?
For Section 179, yes. The deduction is limited to your taxable business income, and unused amounts carry forward.
Bonus depreciation has no such limit and can generate a loss, which is one reason the two are often used together.
What about vehicles?
It depends on the vehicle. Work trucks, box trucks, and heavy equipment over 14,000 lbs GVWR generally qualify for the full deduction. SUVs between 6,000 and 14,000 lbs have a separate capped limit, and passenger vehicles under 6,000 lbs are limited further still.
Worth a specific conversation with your CPA before you sign.
Is this tax advice?
No. Five West Financial arranges equipment financing. We are not tax professionals.
This tool is a planning estimate built on published 2026 federal limits. Every business is different, and the final number belongs to your accountant.
Send it over and we will structure the financing around it. Same-day options on qualified files, and terms built to keep your working capital where it belongs.