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Commercial Equipment & Machinery Tax Estimator

Calculate immediate Section 179 write-offs, spending phase-outs, and bonus depreciation

Instructions: How Equipment Expensing Rules Apply

  1. Total Equipment Cap: The maximum allowable Section 179 expense is $2,560,000.
  2. Phase-Out Threshold: If your company places more than $4,090,000 of qualifying equipment in service during the year, the Section 179 allowance reduces dollar-for-dollar.
  3. Bonus Depreciation: Any qualifying equipment basis exceeding the Section 179 cap is written off via 100% first-year bonus depreciation.

Equipment Cost Parameters

Includes all capital purchases (governs the $4.09M phase-out).

Deduction & Tax Cash Savings

Eligible Section 179 Expensing $125,000
Bonus Depreciation Applied $0
Total First-Year Write-Off $125,000
First-Year Tax Cash Savings
$43,750
Net Effective Equipment Cost $81,250
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