← Guides · November 9, 2026
Section 179 vs Bonus Depreciation: What Is the Difference?
Both let you deduct most of an asset’s cost in year one, but they work differently.
| Section 179 | Bonus depreciation | |
|---|---|---|
| Limited by business income? | Yes | No |
| Can create a loss? | No | Yes |
| Choose asset by asset? | Yes | By class of property |
For an $85,000 work truck with $150,000 of business income, Section 179 can cover the full cost. At a combined 29% rate that is about $24,650 saved in year one, compared with about $4,930 under normal five-year depreciation.
The catch
You are moving deductions earlier. Later years have no depreciation left, and selling the asset can trigger recapture.
Test it in the calculator.