How the Section 179 Deduction Works in 2026

In this episode of The Tax Strategy Podcast, Lucas and Luna dive into Section 179 of the Internal Revenue Code, a powerful tax deduction that allows businesses to immediately expense the cost of qualifying equipment and software. As of 2026, the deduction limit is $1.22 million, with a phase-out threshold of $3.05 million. Using a concrete example of a mid-sized landscaping company, they explain how Section 179 differs from bonus depreciation, which is phasing down to 40% in 2026. Lucas shares a cautionary tale about a bakery that over-deducted and faced recapture, and Luna asks about the tricky rules for vehicles over 6,000 pounds. They wrap up with practical year-end planning tips, including the importance of timing purchases and understanding the taxable income limit. If you own a business or are thinking of starting one, this episode gives you the specifics you need to maximize your deduction without triggering an audit. #Section179 #TaxDeduction #BusinessEquipment #Depreciation #BonusDepreciation #SmallBusiness #TaxStrategy #FexingoBusiness #Finance #Podcast #TaxPlanning #InternalRevenueCode #VehicleDeduction #TaxTips #2026Tax #EquipmentPurchases #BusinessPodcast #TaxCompliance Keep every episode free: buymeacoffee.com/fexingo