Section 179 — Glossary — IRS Depreciation Rules

Section 179

Election under IRC §179 to immediately expense the cost of qualifying property in the year of placement, rather than depreciating it over the MACRS recovery period. 2026 dollar limit is $1,290,000; phased out above $3,220,000 of qualifying investment; capped by taxable income.

STATUTE BASIS · IRC §179

In context

§179 and §168(k) bonus depreciation are often compared, but the mechanics differ:

	§179	§168(k) bonus
Cap	$1.29M (2026 dollar limit)	None
Phase-out	$3.22M–$4.51M investment	None
Income limit	Yes — cannot create loss	None — can create loss
Election	Required (Form 4562)	Default (opt-out election)
Asset granularity	Asset-by-asset	Class-by-class

§179 cannot create a net loss — the deduction is capped at the taxpayer’s aggregate taxable income from any active trade or business. Excess §179 carries forward indefinitely. §168(k) has no such cap.

See /section-179/ for the topic hub.