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Section 179 Deduction Calculator (2026 Limit and Phase-Out)

What does this come to under the current IRS rules?

The 2026 expensing limit reduced dollar for dollar above the investment threshold, capped at business taxable income, with carryforward.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Section 179 deduction
$250,000
Deduction allowed this year
Reduction for cost above $4,090,000
$0
Dollar limit after reduction
$2,560,000
Drawn to one scale
Reduction for cost above $4,090,000$0
Dollar limit after reduction$2,560,000
Section 179 deduction$250,000
Carryforward (income limit)$50,000
Basis left to depreciate$50,000
All results
MeasureResult
Reduction for cost above $4,090,000$0
Dollar limit after reduction$2,560,000
Section 179 deduction$250,000
Carryforward (income limit)$50,000
Basis left to depreciate$50,000
How this was worked out
Work shownrecomputed as you type
Dollar limit = $2,560,000 - max(0, cost - $4,090,000)
Deduction = least of amount elected, dollar limit and business taxable income
Carryforward = allowed amount - deduction

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Dollar limit = $2,560,000 - max(0, cost - $4,090,000)
  • Deduction = least of amount elected, dollar limit and business taxable income
  • Carryforward = allowed amount - deduction

How it works

Tax year: 2026.

For 2026 the maximum section 179 deduction is $2,560,000. It is reduced dollar for dollar by the cost of section 179 property placed in service above $4,090,000. The deduction cannot exceed taxable income from the active conduct of the business, and any excess carries forward. The sport utility vehicle limit for 2026 is $32,000.

The tool takes the cost placed in service, the amount you choose to elect and your business taxable income before the deduction. It does not apply the sport utility vehicle limit or qualifying-property rules.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is the 2026 section 179 limit?

$2,560,000, with the phase-out starting at $4,090,000 of qualifying property placed in service.

What happens to a deduction above business income?

It is carried forward to the next year.

Can I elect less than the maximum?

Yes. Enter the amount you elect and the rest is depreciated under MACRS or bonus.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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