Section 179 Deduction
Section 179: deduct full purchase price in year of purchase. 2024: $1,220,000 limit. Qualifying: tangible personal property (machinery, equipment, vehicles), software, and qualified improvement property (interior nonresidential: HVAC, fire, alarm, roofing). FL businesses: equipment + tenant improvements. NOT: building itself, structural, or residential rental. Limitations: annual limit, phase-out ($3,050,000), business income cap, at-risk (465), and passive (469). Combine with bonus depreciation (168(k)).
The Deduction
- Full price, year of purchase
- $1,220,000 limit (2024)
Qualifying
- Equipment, vehicles, software
- Qualified improvements
- NOT building or structural
Limitations
- Phase-out at $3.05M
- Business income cap
- Combine with bonus depreciation
Related Terms
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