Section 179 — Purchase with Trade-In
First-year deduction stack (§179 + bonus + MACRS) for a purchase with trade-in.
Post-2017, trades are taxable events: the old machine 'sells' at trade value (recapturing its depreciation) and the new one starts at full price basis. The both-sides arithmetic surprises everyone the first year.
Formula
Note: Educational estimate, NOT tax advice. Section 179/MACRS limits change yearly and interact with bonus depreciation, income limits and state rules — confirm every figure with your tax professional.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
First-year deduction stack (§179 + bonus + MACRS) for a purchase with trade-in. A free heavy equipment depreciation & ownership cost tool — no sign-up, no upload, instant results in your browser.
About Section 179 — Purchase with Trade-In
Section 179 — Purchase with Trade-In computes the governing relationship §179 (≤ limit, phase-out, income) → bonus % of remainder → 20% MACRS on the rest live as you type. Post-2017, trades are taxable events: the old machine 'sells' at trade value (recapturing its depreciation) and the new one starts at full price basis. The both-sides arithmetic surprises everyone the first year. Defaults are pre-filled with realistic values for this exact scenario, and the worked example substitutes your numbers step by step so the math is never a black box.
How to use Section 179 — Purchase with Trade-In
- 1Enter your values — Equipment cost, §179 annual limit, Phase-out threshold, Total equipment placed in service and more (sensible defaults are pre-filled).
- 2Read the live results: §179 deduction, Bonus depreciation, MACRS yr-1 on remainder, Total first-year writeoff.
- 3Check the "with your numbers" line to see §179 (≤ limit, phase-out, income) → bonus % of remainder → 20% MACRS on the rest substituted step by step.
- 4Adjust inputs until the scenario matches yours, then copy or share the result.
Why use Section 179 — Purchase with Trade-In?
- ✓Instant, free and private — every calculation runs client-side in your browser; nothing is uploaded
- ✓Built on the stated formula §179 (≤ limit, phase-out, income) → bonus % of remainder → 20% MACRS on the rest with authoritative sources cited on the page (IRC §179 & §168(k) — Expensing and bonus depreciation; IRS Publication 946 — How to Depreciate Property (MACRS))
- ✓Post-2017, trades are taxable events: the old machine 'sells' at trade value (recapturing its depreciation) and the new one starts at full price basis.
- ✓Niche-specific defaults give a meaningful worked answer the moment the page loads
Frequently asked questions
What formula does the section 179 — purchase with trade-in use?+
It evaluates §179 (≤ limit, phase-out, income) → bonus % of remainder → 20% MACRS on the rest, exactly as published. Sources: IRC §179 & §168(k) — Expensing and bonus depreciation; IRS Publication 946 — How to Depreciate Property (MACRS). The substituted worked example on the page lets you verify every step against the textbook.
How should I read the result — and how far can I trust it?+
Post-2017, trades are taxable events: the old machine 'sells' at trade value (recapturing its depreciation) and the new one starts at full price basis. Educational estimate, NOT tax advice. Section 179/MACRS limits change yearly and interact with bonus depreciation, income limits and state rules — confirm every figure with your tax professional.
When is this calculator the right tool for the job?+
First-year deduction stack (§179 + bonus + MACRS) for a purchase with trade-in. A free heavy equipment depreciation & ownership cost tool. The both-sides arithmetic surprises everyone the first year. For neighbouring scenarios, the related tools below cover the same engine with different presets.
Do I need to install anything or create an account?+
No. The tool is pure client-side JavaScript: open the page and it works, offline once loaded, with no account, no quota and no data leaving your device.
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