Jan 1, 2014 For the upcoming 2014 tax year, Section 179 has been restored to its original limits of $25,000 plus an adjustment for inflation.

Bookmark this page and check back for official details and easy-to-understand, up-to-date explanations regarding any changes to Section 179 for 2014.

Until April 15, 2014, all pages of this site, including the Section 179 Calculator, will remain with 2013 tax year preparation information. Afterwards, the site will be updated with the new Section 179 Deduction information for tax year 2014.

Here are the Section 179 Deduction Limits for 2013 and 2012 (retroactive)

Section 179 has been enhanced for *both* 2012 and 2013 tax years (2012 is retroactive, obviously). This is due to the passage of H.R.8: American Taxpayer Relief Act of 2012 (The “fiscal cliff / fiscal crisis” bill).

2013 Deduction Limit = $500,000
2013 Limit on Capital Purchases = $2,000,000
2013 Bonus Depreciation = 50%

Please note the above limits are as of 1/1/2013, and are for tax year 2013. In addition, 2012’s old limit ($125,000 deduction) has now been raised to $500,000 as well. This means qualifying purchases you made in 2012 can now take advantage of the new, higher deduction limits.

Please Note:

Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.

Bonus Depreciation can be taken on new equipment only (no used equipment, no software)

When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in the given tax year.

Also, many businesses are finding Section 179 Qualified Financing to be an attractive option in 2013.