Section 179 deduction limit 2026 is now $2,560,000 (with the phase-out threshold at $4,090,000). Did your CPA notice?
The One Big Beautiful Bill became law in July. That was seven months ago.
So let me ask you something: has your CPA changed anything about your tax plan since then?
Because one of the biggest changes in that bill was Section 179. The expensing limit doubled—from $1.25 million to $2.5 million. And for 2026, the IRS inflation-adjusted expensing limit is $2,560,000, with the phase-out threshold at $4,090,000 (see IRS Revenue Procedure 2025-32).
That’s not an adjustment…in my opinion, that’s a completely different game.
But most business owners I talk to tell me their CPA hasn’t mentioned it. Nothing has been restructured. There’s been no revisit of their equipment purchases, their vehicle strategy, their capital planning. Nothing.
Seven months of leaving money on the table.
If you’re buying equipment, vehicles, furniture, or machinery for your business in 2026, you can potentially write off up to $2.56 million of qualifying purchases in one year (subject to Section 179 rules and limitations). Not spread over 5, 7, or 39 years.
Stack that with 100% bonus depreciation—also now permanent under the same bill—and for qualifying property acquired and placed in service after January 19, 2025, you can potentially get the full write-off in year one. No depreciation schedule. No waiting.
If you want the bigger-picture planning landscape for this year, read: 2026 Tax Strategy for Business Owners: Tariffs, OBBBA Wins, and the IEEPA Wild Card.
I had a client—construction company—who bought $800,000 in equipment last year. Their previous CPA had been depreciating everything over 7 years. That’s about $114,000 a year in deductions.
We restructured the purchase timing and applied Section 179 plus bonus depreciation. Wrote off the entire $800,000 in year one.
That’s $686,000 in additional deductions they would have waited years to claim. Gone. In one filing.
Now imagine what that looks like at the Section 179 deduction limit 2026 level.
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What qualifies? More than you’d think.
If vehicles are part of your plan, don’t guess. The rules are detailed and the “right” move depends on weight, seating, business-use %, and timing. See: 2025 OBBBA Vehicle Tax Deductions: How Last‑Minute Purchases Can Slash Your Tax Bill.
Manufacturers may be able to claim a 100% special depreciation allowance on qualifying portions of production buildings themselves under Section 168(n) (qualified production property)—not just the equipment inside.
This has specific timing and usage requirements, so it must be structured carefully before you build, buy, or retrofit.
This law has been on the books since July. Tax season is here. And I’m still sitting across from business owners whose CPAs are filing their 2025 returns the same way they filed 2024. Same depreciation schedules. Same missed deductions. Same results.
The code changed. If your tax plan didn’t change with it, you’re overpaying. It’s that simple.
And it’s not just about 2026 purchases. If your CPA has been depreciating assets over multiple years that could have been expensed immediately, there may be a way to catch up. I’ve recovered six figures for clients just by correcting how their depreciation was handled.
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To your tax savings,
Laura Dohanes
MyCPAPro
P.S. The property has to be placed in service during the tax year—not ordered, not shipped, but actually in use. If you’re planning a Q2 or Q3 purchase, the time to structure it is now, not when the invoice shows up.
Note: This article is general educational information and not tax advice. Eligibility, elections, and state treatment vary by facts and circumstances.