What is the Section 179 deduction?
Section 179 of the U.S. tax code lets a business deduct the full purchase price of qualifying equipment in the year it's placed in service, instead of depreciating it over many years. Bonus depreciation can cover amounts beyond the Section 179 cap. Most commercial kitchen equipment (refrigeration, ranges, ovens, etc.) qualifies when used for business.
How much can I write off for kitchen equipment?
For most small-business buyers, the annual Section 179 cap is far above a typical kitchen build, so you can usually expense the full cost in year one — and bonus depreciation covers the rest. The exact deduction cap, phase-out threshold, and bonus-depreciation percentage change every year, so confirm the current figures with a CPA before you file.
How does the deduction save me money?
The deduction reduces your taxable income, so your savings equal the deduction multiplied by your marginal tax rate. A $20,000 oven fully expensed at a 24% rate saves about $4,800 in tax, making the net cost roughly $15,200. This calculator does that math for your numbers.
Is this tax advice?
No. It's a planning estimate. Eligibility, the annual limits, business-income limitations, and how Section 179 interacts with bonus depreciation depend on your situation and the current tax year. Always confirm with a qualified tax professional.