Section 179 lets you deduct the full cost of qualifying equipment in the year you buy it. Here's what qualifies, how to claim it, and a real example.
Normally, when you buy equipment, you depreciate it over several years. A $3,000 laptop depreciated over 5 years gives you $600/year. Section 179 lets you deduct the **full $3,000 in year one**.
The 2025 deduction limit is **$2.5 million**. For virtually every solo founder and creator, there's no practical limit.
The asset must be **used for business more than 50% of the time**.
**Bonus depreciation** for 2025 is at **40%** (stepping down from 100% in 2022). Section 179 is more flexible — you choose which assets to apply it to. For most small founders: use Section 179 first, then layer bonus depreciation on what's left.
Total Section 179 deduction: $3,744
In a 22% tax bracket, that's **$823 in taxes you don't pay this year**.
File **Form 4562** with your tax return. List each asset, its cost, and business-use percentage. Tax software handles this automatically when you input your purchases.
Keep receipts. Keep records of when you put each asset in service.
If you bought tech for your business this year, Section 179 is how you get the full tax benefit immediately instead of spreading it over five years. Most creators leave money on the table by not knowing this exists.
Schedule to 7 platforms, get 15+ AI tools, and grow your audience — all for free. No credit card required.
Create free account →7 platforms · 15+ AI tools · Free forever
Comparing tools?
❤️ 2% of every SocialMate subscription goes to SM-Give — our charity initiative. Learn about SM-Give →