Section 179 Deduction & Bonus Depreciation

Section 179 allows businesses to lower their current-year tax liability rather than capitalizing an asset and depreciating it over a period of time in future tax years.

Benefits of Section 179:

  • Immediate expense deduction for purchases of depreciable business equipment.
  • Allowable deduction to maximum of $1,160,000.
  • Incentive to grow businesses with the purchase of new and used equipment.
  • The limit of capital purchases is $2,890,000.  


Bonus Depreciation:

  • A first-year 80% bonus depreciation deduction on qualified capital expenditures.
  • Bonus depreciation is taken after the section 179 spending cap is reached.
  • Incentive to grow businesses with the purchase of new and used equipment.


This is an example of using the Section 179 Deduction by purchasing a WFT 13 CNC table-type machine. The figures here are for illustrative purposes only!

This is an example of using the Section 179 Deduction by purchasing a WRF 160 CNC floor-type machine. The figures here are for illustrative purposes only!

To take the deduction for tax year 2023, the equipment must be financed / purchased and put into service between January 1, 2023 and the end of the day on December 31, 2023.


The information on this site is provided as a customer service by LUCAS PRECISION LLC. However, it should not be construed as tax advice. We strongly recommend that you consult with your tax advisor!