Section 179 Bonus Depreciation 2024 Limit

Section 179 Bonus Depreciation 2024 Limit. The section 179 deduction allows businesses to write off up to a certain amount of the purchase price of qualifying equipment and software in the year it was placed in service. Utilize both bonus depreciation and section 179 expensing to maximize tax savings.

Claiming section 179 depreciation expense on the company’s federal tax return reduces the true cost of the purchase to $130,000 (assuming a 35% tax bracket), freeing up $70,000 in cash savings. The maximum section 179 deduction is reduced dollar for dollar by the amount of.