IRC §179 · 26 U.S.C. §179
IRC §179: Election to Expense Depreciable Assets
IRC §179 lets a business expense qualifying equipment immediately instead of depreciating it over years — up to an annual dollar cap, phasing out past a spending threshold. It is the small-business counterpart to bonus depreciation, elected return by return.
What it governs
- Tangible personal property and qualifying software
- Annual dollar cap with a phaseout past the spending threshold
- Limited to business taxable income — excess carries forward, never creates a loss
- Elected per return: flexible year to year
In the GuideFull treatment in Chapter 3 of the Guide — THE TAX CUTTERY® Guide to Federal Income Taxation, Professional Edition (564 pages, 24 chapters).
From the practiceThe acceleration playbook: cost segregation →
Questions this section answers
- §179 or bonus depreciation?
- §179 has caps and can't create a loss; bonus — now permanent at 100% for qualifying property — has no cap. Small equipment years favor §179; big years favor bonus.
- Can §179 create a loss?
- No. The deduction is limited to taxable income from the business, with the excess carried forward. Bonus depreciation has no such limit.
- Does §179 cover real estate?
- Generally no — it is for equipment and qualifying property. Buildings run through §168 depreciation and cost segregation instead.
The whole Code, one volume.
The Guide treats 149 Code sections across 24 chapters — every claim verified against primary sources.
Get the Guide — $299
The Guide treats 149 Code sections across 24 chapters — every claim verified against primary sources.
Get the Guide — $299