Skip to main content


big News about section 179 deductions for 2016


With the passage of the PATH ACT in December 2015, the Section 179 deduction limit has been expanded to $500,000.

This expanded relief for businesses covers most equipment purchases during 2016.


Here’s a simplified overview from

2016 Deduction Limit = $500,000
This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2016, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2016.

2016 Spending Cap on equipment purchases = $2,000,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive”.

Bonus Depreciation: 50% for 2016
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.

Note:Always consult your tax adviser or accountant for more information on all tax-related matters and how they affect you.

Financing new equipment for a laundromat