Section 179 Calculator for Trucks, Vans and Equipment (2026)

Section 179 lets a business deduct the full cost of qualifying equipment and vehicles in the year they're placed in service instead of depreciating them over years. For 2026 the limit is $2,560,000, reduced dollar for dollar once purchases pass $4,090,000. Heavy SUVs are capped at $32,000, and business use must exceed 50%.

How does the Section 179 deduction work?

You elect Section 179 on Form 4562 for property you bought and put to work in your business during the year. Instead of spreading the cost over five or seven years, you deduct the business-use share of it now, up to the dollar limit and your business income. Whatever Section 179 doesn't cover can go to bonus depreciation, then regular depreciation.

Section 179 = min(Cost × B, L − max(0, P − T), C, I)

1. 1

   Classify what you're buying.

   Equipment, a heavy truck or van over 6,000 lb GVWR, a heavy SUV, or a lighter vehicle. GVWR is on the sticker inside the driver's door.

2. 2

   Set your business-use percentage.

   Use your mileage log for vehicles. It has to be over 50% in the year you place it in service.

3. 3

   Confirm when you acquired it.

   Property acquired after Jan. 19, 2025 qualifies for 100% bonus depreciation. Placed in service means ready and available for use, not just ordered.

4. 4

   Enter business income.

   Section 179 can't create a loss. Bonus depreciation can.

5. 5

   Read the first-year write-off.

   The calculator applies the dollar limit, phase-out, SUV cap or light-vehicle cap, then bonus depreciation.

How much can you write off by vehicle type?

With 100% bonus depreciation, the $32,000 SUV cap barely matters: bonus covers the rest. Without bonus, the same heavy SUV gets $32,000 now and $26,500 spread over later years. A lighter vehicle is the one that really gets limited: $18,270 in year one no matter how it's financed.

What is the Section 179 SUV limit for 2026?

$32,000. It applies to four-wheeled vehicles built mainly to carry passengers that are rated over 6,000 lb and up to 14,000 lb gross vehicle weight. IRS Publication 946 excludes vehicles that seat more than nine behind the driver, vehicles with a cargo area at least 6 feet long that isn't readily reachable from the passenger compartment, and vans with no seating behind the driver and no body section sticking out more than 30 inches ahead of the windshield. That's why most full-size work pickups and cargo vans aren't SUV-limited.

Section 179 vs. bonus depreciation

What happens if business use drops below 50% later?

If a vehicle you expensed falls to 50% business use or less in a later year, part of the deduction is recaptured: you add back the excess over what straight-line depreciation would have allowed. Keep the mileage log for every year you own the truck, not just the first.

Common mistakes

• Buying just for the write-off. A $60,000 deduction saves a fraction of $60,000 in tax. The rest is still cash out the door or a loan payment.
• Ordering in December, delivering in January. The deduction follows the year the property is placed in service, not the order date.
• Guessing business use. Without a log, an auditor can cut the percentage, and with it the deduction.
• Using the standard mileage rate later. Once you claim Section 179 on a vehicle, you can't switch it to the standard mileage rate.
• Ignoring your state. Some states don't follow federal bonus depreciation or the full Section 179 limit, so your state deduction can be smaller.