Section 179 Expense Deduction for 2017

The Section 179 Deduction Limit is $510,000.
Under the Internal Revenue Code Section 179, up to $510,000 can be deducted from your taxable income, if you acquire and place into service qualifying new and used equipment during 2018. The deduction is reduced "dollar-for-dollar" to the extent that qualifying new and used equipment of $2,030,000, or more is purchased and placed into service, and is completely phased out if $2,540,000 or more is purchased and placed into service.

50% Bonus 1st Year Depreciation in 2017

50% bonus depreciation is available for qualifying new and used equipment purchased and placed into service in 2017. This will allow you to claim first-year depreciation equal to 50% of the adjusted basis of "qualified property." The adjusted basis is generally the equipment cost less the amount of any Section 179 deduction taken with respect to the equipment.

Normal 1st Year Depreciation

For most agricultural and construction equipment, 20.00% of remaining cost may be deducted the first year the equipment is placed into service. As used above, “remaining cost” generally refers to the cost of the equipment less the amount of any Section 179 deduction and 50% bonus deprecation taken with respect to the equipment.