Section 179 Checker · Tax year 2026

Should I buy it before Dec 31?

Thinking about a truck, van, machine, or software before year-end? Get a quick estimate of how much you could expense under Section 179 for 2026, and whether doing it all now is a smart move.

Run the numbers

What are you buying?

GVWR is on the driver-door sticker. Some heavy SUVs avoid the SUV cap (for example, a 6-foot+ cargo bed not reachable from the cab). Ask before you rely on that.

New or used?

New Used (new to you)

Purchase cost ($)

Business-use percentage (%)

Expected "placed in service" date

Placed in service means ready and available for use in your business, not just ordered, paid for, or financed.

Total Section 179 purchases in 2026, including this one ($)

Expected 2026 net business income ($)

Section 179 can't exceed taxable income from your active trades or businesses. Any excess carries forward.

Your estimated marginal tax rate (%) optional

Federal bracket plus state and self-employment tax, if you know it.

Is expensing it all now smart?

A bigger deduction this year isn't always the better deal. Slow down and talk it through if:

Your income is low this year. A deduction is worth more in a year your income sits in a higher bracket. Expensing against low income can waste the benefit or push it into a carryforward.
You expect a higher bracket later. Regular depreciation over several years may save more if your income is climbing.
You plan to sell or trade it soon. When you sell, some or all of the deduction can come back as ordinary income (depreciation recapture). If business use drops to 50% or less in a later year, part of the Section 179 deduction is also recaptured.
Don't buy just for the deduction. A deduction reduces tax on money you spent. Spending $1 to save 24 to 37 cents only makes sense if you needed the asset anyway.
State rules vary. Some states cap Section 179 at lower amounts or don't follow federal bonus depreciation, so your state deduction may differ from your federal one. Check your state before you count on the same savings.

Also note: for property acquired after January 19, 2025, the IRS says federal bonus depreciation is a permanent 100% under the One, Big, Beautiful Bill. Depending on your facts, bonus depreciation or Section 179 (or a mix) may fit better. Bonus depreciation isn't limited by business income the way Section 179 is.

Get a second set of eyes before you sign

In a free 30-minute Tax Leak Review, we'll look at the purchase, your 2026 income, and whether Section 179, bonus depreciation, or regular depreciation fits best. That way the year-end buy actually pays off.

Book a free 30-minute Tax Leak Review

Sources

Rev. Proc. 2025-32, section 4.24: for 2026, the $2,560,000 limit, the $4,090,000 phase-out threshold, and the $32,000 SUV limit.
IRS Publication 946 (2025), How To Depreciate Property: "What's New for 2026," the business income limit and carryforward, the more-than-50% business-use rule, the placed-in-service rule, and recapture.
Instructions for Form 4562: the Section 179 election, the business income limit, and listed property.
IR-2026-06 and Notice 2026-11: permanent 100% bonus depreciation for property acquired after Jan. 19, 2025.

This checker gives a rough estimate for a calendar-year taxpayer. It's general information, not tax or legal advice. It doesn't cover every rule (for example, related-party purchases, trade-ins, partnership and S corporation limits, or listed-property details). It doesn't create a client relationship. Advice for your situation starts only after a formal engagement with Tristan D. Taylor, EA.