IRS Section 179

[Melanie Baldridge]

Understanding IRS Section 179 is key to optimizing your tax strategy.

179 lets businesses expense certain assets upfront instead of depreciating them over time.

For 2025, up to $1.22M of qualified equipment and software can be expensed, but there are limits.

The maximum investment threshold is $3.05M, reducing the deduction dollar-for-dollar if exceeded.

Additionally, the Section 179 deduction cannot surpass your taxable business income, and some assets, like real property, generally don’t qualify unless specified as "qualified improvement property."