Year-End Planning  /  2026

Section 179

What it does, where it stops, and whether it fits your firm.

Section 179 is available this year. Whether it benefits your firm is a separate question, and we will help you answer it.

What it does

Section 179 lets a firm deduct the full cost of eligible equipment or software in the year it is placed in service, rather than a fraction each year under standard depreciation. The benefit is cash timing, and it lands differently from firm to firm.

Where it stops
  • The deduction cannot exceed the firm's taxable income.
  • Caps and phase-outs apply above a purchase threshold.
  • Equipment has to be in service by December 31. Ordering it does not count.
  • Eligibility follows how the agreement is structured, not what it is called.
  • State treatment does not always follow federal treatment.
2026 Federal Figures
$2,560,000
Deduction limit
$4,090,000
Phase-out begins
$6,650,000
Full phase-out

What a firm can actually use in a given year is a separate question.

Structure comes first

An FMV lease is built for predictable refresh cycles, clean end-of-term returns, and someone else carrying the residual risk. That holds whether or not Section 179 applies this year.

Questions worth asking before December
  • Reduce taxable income this year, or preserve deductions for next year?
  • Are we spending cash on equipment we could finance instead?
  • Any upgrades we deferred that would improve how we operate?
  • Are our refresh cycles and end-of-term returns working the way we want?
  • Could restructuring existing agreements free up cash before year end?
  • Any owned equipment we could convert through a sale-leaseback?
How CoreTech helps

We lay the options side by side and show what each looks like over the full term. Sometimes that leads to Section 179. Sometimes it confirms the structure you already have.

info@coretechleasing.com  |  coretechleasing.com

Let's find out together

Disclaimer: This material is for general information only and is not tax or legal advice. CoreTech Leasing does not provide tax advice. Please consult your tax advisor regarding your firm's specific situation. Source: Rev. Proc. 2025-32 (IRS).