Section 179 Expensing Calculator

Tax years 2026-2030 • Dollar limit & phase-out • SUV cap • Business income limit & carryover

IRC §179 Form 4562, Part I Rev. Proc. 2025-32 OBBBA §70306 (P.L. 119-21)

Tax Year & Assumption

Tax year (taxable years beginning in)

2026 limits are from Rev. Proc. 2025-32, sec. 4.24. The 179 amounts are indexed for taxable years beginning after 2025, 26 U.S.C. 179(b)(6).

Annual inflation assumption for 2027-2030 (%)

Used only for projected years. Default 2.5%. Not an IRS figure; IRS publishes each year's amounts in a revenue procedure.

Property & Election

Total cost of all 179 property placed in service in the year ($)

Include all eligible property placed in service, not only what you elect to expense: it drives the phase-out. 26 U.S.C. 179(b)(2); Form 4562, line 2. Business-use cost only (Treas. Reg. 1.179-1(d)).

Of that, cost of sport utility vehicles ($)

SUV = 4-wheeled vehicle rated 14,000 lbs GVW or less and not subject to 280F (excludes vehicles seating more than 9 behind the driver, with a 6-foot open cargo bed, or fully enclosed cargo vans). 179(b)(5)(B).

Amount you elect to expense ($)

Blank elects the maximum allowed after phase-out and SUV cap. The election is made on Form 4562, lines 6-7. 179(c).

Taxable income from active businesses before 179 ($)

179(b)(3) limit. Computed without the 179 deduction; Form 4562 line 11 instructions say individuals include wages and joint filers combine spouses.

Disallowed 179 carryover from prior years ($)

Prior-year Form 4562, line 13. 179(b)(3)(B); Treas. Reg. 1.179-3.

Section 179 Deduction

Limit After Phase-Out

Form 4562, line 5

179 Deduction

Form 4562, line 12

Remaining Cost

MACRS / bonus

Carryover

Form 4562, line 13

Step-by-Step Calculation

Assumptions & sources

Authority: IRC §179(a), (b)(1)-(3), (b)(5), (b)(6), (c); Treas. Reg. §§1.179-1, 1.179-2, 1.179-3; Rev. Proc. 2025-32, sec. 4.24 (2026 amounts: $2,560,000 limit, $4,090,000 threshold, $32,000 SUV cap); OBBBA (P.L. 119-21) §70306 (limit raised to $2,500,000 and threshold to $4,000,000 for 2025, indexed after 2025); Instructions for Form 4562, Part I, lines 1-13. Not modeled: married filing separately allocation (Form 4562 line 5 instructions), controlled group apportionment, partnership and S corporation entity-plus-owner testing, 179(e) qualified real property election mechanics, and the recapture rule of 179(d)(10).

Last verified: October 29, 2026. Projected figures are estimates, not IRS-published amounts; the IRS publishes each year's indexed 179 amounts in a revenue procedure, usually in the fall before the tax year. Verify against the published figures before relying on any projected year.

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