How much 179 depreciation can you take?
Ava Robinson
Published Apr 11, 2026
A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. The new law increased the maximum deduction from $500,000 to $1 million. It also increased the phase-out threshold from $2 million to $2.5 million.
What is the maximum 179 expense amount for 2020?
$1,040,000
What is the Section 179 limit for 2020? A company can now expense up to $1,040,000 (up from $1,020,000 in 2019) deduction on new or used equipment with Section 179. This deduction is applied to a specific piece of equipment, and it allows you to take a one-time deduction.
Can you use Section 179 depreciation on a business vehicle?
You may be able to combine a section 179 deduction with depreciation on a vehicle in a specific tax year. For example, a section 179 deduction can also be used with a depreciation method called bonus depreciation to save on taxes when you buy a business vehicle. Check with your tax professional for qualifications and limits on depreciation.
What’s the Order of Section 179 and bonus depreciation?
We have the answers. The order of depreciation is Section 179 Deduction, then Bonus Depreciation and then regular depreciation. This means you apply limits, subtract the allowance and then apply subsequent laws to the remaining amounts.
What are the qualifications for a section 179 deduction?
Qualifications for Section 179 Deductions. First, these deductions are only for vehicles used more than 50% of the time for business purposes. The deduction is limited to the amount of use. Some vehicles (like taxis, airport shuttle vans, and limousines) are considered only as business vehicles, so they can be deducted at 100%.
When does recapture occur on a section 179 deduction?
Section 179 recapture. Recapture also applies to Section 179 assets and happens when a business adds income to a section 179 deduction taken in the prior year. This occurs when a property that was section 179 expensed was used for mostly personal reasons after being placed in
