Glossary
What is Section 179?
Section 179 is a provision of the federal tax code that lets businesses elect to deduct the cost of qualifying equipment and certain other property in the year it is placed in service, rather than depreciating it over several years. It can apply to financed equipment. Section 179 has annual dollar limits and a spending threshold that change over time, and it is limited by business taxable income. Confirm current limits and eligibility with a tax professional.
Example
A contractor finances a new truck and, after consulting a tax professional, elects Section 179 for the purchase.
Related funding
Equipment Financing: The equipment itself secures the financing.
Related terms
Questions about an offer? Your advisor will explain every term.