Section 179 of the US Internal Revenue Code lets a small business write off the entire purchase price of qualifying equipment in the year it is placed in service, rather than spreading the deduction across the asset's life through depreciation. For a maker buying a kiln, a mixer, a laser cutter, or a wheel, that can mean a much larger deduction in the year of purchase.
It is essentially the accelerated alternative to depreciation, and which one helps more depends on your tax situation — Section 179 front-loads the benefit, while straight-line depreciation spreads it out. There are annual dollar caps and eligibility rules that change year to year; the cap sits in the seven figures for most small businesses, far above a typical maker's equipment spend, but always check the current limits in IRS Publication 946 ("How to Depreciate Property").
This is a planning concept, not tax advice: the right treatment for a specific purchase depends on your income, your other deductions, and current limits. Ardent Seller tracks equipment and its depreciation schedule to support that conversation with a tax professional, who should confirm the actual election.
Related terms
Depreciation
The gradual decrease in value of equipment over time. Ardent Seller tracks depreciation schedules for your equipment to help with tax reporting and replacement planning.
Schedule C
An IRS tax form (Schedule C - Profit or Loss from Business) used by sole proprietors. Ardent Seller can categorize expenses and generate reports aligned with Schedule C line items.
Tax Category
An IRS Schedule C expense or income category used to classify transactions for tax reporting. Helps organize your financial data for end-of-year tax preparation.
Cost Basis
The total amount invested to acquire an item — purchase price plus associated costs — used to calculate profit and cost of goods sold when it sells.