Section 179 Depreciation 2025. Internal revenue code is an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and. With bonus depreciation facing a complete phase out by 2026, taxpayers focused in real estate may begin to implement section 179 expense to continue deducting the full cost.
Taxpayers can elect to claim 100% bonus depreciation or section 179 expensing to deduct the full cost of eligible property up front, in the year itโs placed in service. The maximum section 179 expense deduction is $1,250,000, and this expense is reduced by the amount of section 179 property is placed in service during the tax year that exceeds $3,130,000.
