Keep More of Your Own Money in 2021

The Section 179 deduction is higher than ever in 2021 (a full $1,050,000). Combine this deduction with Crest Capital’s ‘Section 179 Qualified Financing’, and you can keep thousands of dollars in your bank account instead of giving it to the IRS.
Learn More About Section 179 and Financing with this Free Report →

Use this Section 179 Calculator to Calculate Your 2021 Savings

Using Section 179, Small and Mid-Sized businesses can write off the full purchase price of new and used qualifying equipment on their 2021 taxes. How much can you actually save in raw dollars? Use this free Section 179 calculator to find out. It’s fully updated for 2021, and easy to use.

2021 Section 179
Tax Deduction Calculator^TM

Assuming a tax bracket of:

Section 179 Deduction:

Bonus Depreciation Deduction:
(100% in 2021)

Normal 1st Year Depreciation:

Total First Year Deduction:

Cash Savings on your Purchase:

Lowered Cost of Equipment:
(after Tax Savings)

The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.

2021 is The Best Year Ever for Section 179

The 2021 Section 179 deduction has been raised to $1,050,000 (that’s one million, fifty thousand dollars). This means your company can buy, finance, or lease new or used equipment, and write off the full purchase price on your 2021 taxes. This can result in substantial savings.

To use Section 179 for 2021, the equipment must be purchased (or financed/leased) and put into service by midnight 12/31/2021. To claim the deduction, use Form 4562.

Deduction Limits
Qualifying Property
Prior Year Calculators

Section 179 Deduction Limits for 2021:

The Section 179 deduction limit for 2021 is $1,050,000. This means your company can deduct the full cost of qualifying equipment (new or used), up to $1,050,000, from your 2021 taxable income. This deduction is good until you reach 2.62 million in purchases for the year.

Section 179 is Meant for Small and Mid-sized Companies

Section 179 helps small and mid-sized companies invest in themselves. The full $1,050,000 deduction can be claimed up to the $2,620,000 equipment purchases limit. Once that number is reached, the Section 179 deduction decreases dollar-for-dollar, and reaches zero once $3,670,000 worth of equipment is purchased/financed.

Section 179 Deduction Limits for 2021
Deduction Limit	$1,050,000
Limit on Capital Purchases	$2,620,000
Bonus Depreciation	100%

This is why we say it’s for small and mid-sized companies, as most will not reach that spending limit.

About the Section 179 Deadline

The Section 179 deduction has proven wildly popular with small and mid-sized companies. But there is a deadline: to use the deduction for 2021, the equipment must be purchased/financed, and put into service by 11:59 pm, 12/31/2021.

A Look Towards the Future

The Section 179 Tax Deduction was made permanent several years ago. However, there is typically a small inflation-adjusted increase annually. For example, it was $1,040,000 in 2020, and is now $1,050,000 for 2021. This is good news, because many companies count on this excellent tax deduction yearly.

Qualifying Property for Section 179:

Most tangible business equipment (both new and used) will qualify for the deduction. This includes production machinery, computers/printers, office furniture, copiers and other office machines, signage, shelving, storage tanks, and most other general equipment.
Commercial use vehicles will usually qualify. This means vehicles with seating for 9+ passengers, a 6’ cargo area, or a fully enclosed cab-over driving compartment.
Passenger vehicles exceeding 6,000+ pounds GVW (gross vehicle weight) will usually qualify, however, they are usually limited to a $25,000 deduction.
“Heavy equipment” qualifies.
Section 179 is good for software as well. The caveat is the software must be available for purchase by the general public, and carry a non-exclusive license, without custom modifications. This means operating systems, common office suites, common graphics programs, and similar will qualify. This does not include website and/or apps.
Many storage structures (such as those used for agricultural purposes) will qualify. This will not include your “main” building.
Many building improvements like HVAC, alarm and/or fire systems, roofs, and similar can qualify.
As we stated earlier, used/preowned versions of the preceding (save for software of course) will generally qualify for Section 179.
If you have questions regarding Section 179 eligibility of equipment you wish to lease or finance, you can always contact us, or reference IRS Publication 946.

The equipment listed above need not be new – it can be used (but new to you). Almost any "portable" (non-permanently installed) piece of business equipment will likely qualify. If you have any questions on whether something you wish to lease or finance will qualify for Section 179, you can always ask us, or reference IRS Publication 946.

Tax Code Section 179 limits have been modified by various Stimulus Acts over recent years. For further detail, contact your tax adviser or visit www.irs.gov and reference Form 4562.