Section 179 of the United States Internal Revenue Code (26 U.S.C.
§ 179), allows a taxpayer to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated.
The 179 election is optional, and the eligible property may be depreciated according to sections 167 and 168 if preferable for tax reasons.
[5] For regular depreciation deductions in the United States, see MACRS.
Second, if a taxpayer places more than $2,000,000 worth of section 179 property into service during a single taxable year, the § 179 deduction is reduced, dollar for dollar, by the amount exceeding the $2,500,000 threshold, again as of January 1, 2018.