Section 179 Deduction 2025. Internal revenue code is an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and. As the fiscal year comes to a close and businesses start looking ahead to goals for 2025, businesses need to remember the advantages of applying tax section 179 deductions.

Section 179 expense allows the taxpayer (except trusts and estates) an immediate deduction on certain types of depreciable property. For tax years beginning in 2025, the same deduction will max out at $1.25 million and begin to phase out when 2025 qualified asset additions exceed $3.13 million.