Section 179 vs bonus depreciation
Varies
Can You Write Off Section 179 vs Bonus Depreciation?
Short answer: Section 179 can't create a loss and is capped; bonus depreciation can create a loss and has no cap, so many businesses use both.
For 2026, Section 179 allows up to $2,500,000 of equipment to be expensed (phasing out above $4,000,000 of purchases), and 100% bonus depreciation is permanent for property acquired after January 19, 2025.
Records to keep: Keep receipts or invoices, proof of payment, and a note of the business purpose for each expense.
Section 179 vs bonus depreciation
Varies
General Business
Section 179 can't create a loss and is capped; bonus depreciation can create a loss and has no cap, so many businesses use both.
Business justification
Section 179 can't create a loss and is capped; bonus depreciation can create a loss and has no cap, so many businesses use both. For 2026, Section 179 allows up to $2,500,000 of equipment to be expensed (phasing out above $4,000,000 of purchases), and 100% bonus depreciation is permanent for property acquired after January 19, 2025.
Category
- Tax Write-Off Rules