Take Advantage of IRS Section 179 and Bonus Depreciation for 2025
Sample Section 179
Tax Deduction for 2025
(assuming 35% tax bracket)
EQUIPMENT PURCHASE: $1,200,000
Section 179 Deduction: $1,250,000
40% Bonus Depreciation: $20,000
Normal 1st Year Depreciation $0
Total 1st Year Deduction $1,270,000
Potential Tax Savings $444,500
EQUIPMENT COST AFTER TAX SAVINGS: $855,500
The current tax law also allows 40% “Bonus Depreciation” on new and used equipment placed in service during the 2025 tax year.
The deduction begins to phase out on a dollar-for-dollar basis after $3,130,000 is spent by a given business.
Note: You should always consult your accountant or tax advisor prior to making any purchase based on tax implications.