Section 179 Equipment Calculator (2026)

Two ways to expense the same purchase

Normally a business asset is depreciated over several years. Two provisions let you skip that. Section 179 lets you elect to expense qualifying property immediately, up to $2,560,000 for 2026 — a ceiling no freelancer will ever meet. Bonus depreciation was restored to 100% by the One Big Beautiful Bill Act and applies automatically unless you opt out.

For most freelancers the practical difference is one rule: Section 179 cannot exceed your business taxable income, while bonus depreciation can. Buy $9,000 of equipment against $6,000 of profit and Section 179 gives you $6,000 this year with $3,000 carried forward; bonus depreciation gives you the full $9,000 and creates a $3,000 loss that can offset other income. Neither is universally better, which is why the calculator shows both.

When taking the whole deduction now is a mistake

Front-loading feels like winning, and often it is — but not always. If this is a lean year and you expect much higher profit next year, deducting $9,000 against the 12% bracket now instead of the 24% bracket later costs you real money. Depreciating normally, or electing out of bonus depreciation, deliberately saves the deduction for when it is worth more.

There is also a self-employment tax angle that pushes the other way. A business deduction reduces profit, so it saves roughly 14 cents of self-employment tax per dollar on top of income tax — but only up to the point where profit reaches zero. Deductions that push you into a loss stop saving SE tax entirely, which is a quiet argument for spreading them.

The vehicle rules are their own maze

Passenger cars face strict annual depreciation caps. Vehicles between 6,000 and 14,000 pounds gross weight — most large SUVs and pickups — escape those caps but hit a separate $32,000 Section 179 ceiling for 2026. Anything above that can still be covered by bonus depreciation. Pickups with a bed of at least six feet are exempt from the SUV limit altogether.

Whichever category applies, the deduction is scaled by business use, and a vehicle used 50% or less for business cannot use Section 179 at all. Business use must also be documented — the same mileage log that supports your mileage deduction does this job.

Getting the timing right

The test is placed in service, not paid for. A camera ordered in December and delivered in January is a next-year deduction no matter when the card was charged. Equally, buying on credit in December and paying over two years still gives you the full deduction this year, provided the asset is in use.

One trap worth naming: if business use of an asset later drops below 50%, part of the deduction you already claimed is recaptured as income. Claiming 100% business use on something you also use personally is the most common way freelancers create a problem for themselves two years later.

Frequently asked questions