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Form 4562 Calculator

Calculate your 2026 IRS Form 4562 first-year deduction across Part I Section 179 expensing ($2,560,000 max deduction, $4,090,000 investment phaseout, $32,000 heavy SUV cap), Part II 100% special bonus depreciation, and Part III MACRS regular first-year depreciation.

Updated November 7, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

2026 IRS Form 4562 Section 179, Bonus & MACRS calculator

Asset class Asset cost × business-use % ($) Total 2026 Sec 179 property placed in service ($) Taxable business income before Sec 179 (Line 11) ($)

Elect Section 179 (Part I)? Bonus depreciation rate (Part II, Line 14) Combined marginal tax rate (%)

Form 4562 Line 22 total Year-1 depreciation deduction

–

–Part I Line 12 Section 179 elected

–Part II Line 14 bonus depreciation

–Part III Line 19 Yr-1 MACRS

–Year-1 cash tax savings

2026 IRS Form 4562 Section 179 & vehicle limits (Rev. Proc. 2025-32)

Form 4562 statutory limit	2026 amount	Form 4562 line
Maximum Section 179 deduction cap	$2,560,000	Part I, Line 1
Section 179 investment phaseout threshold (dollar-for-dollar reduction)	$4,090,000	Part I, Line 3
Complete Section 179 phaseout ceiling	$6,650,000	Part I, Line 5
Heavy sport utility vehicle (SUV 6,000–14,000 lbs GVWR) Section 179 cap	$32,000	Part V, Line 26
Special bonus depreciation for qualified property acquired after Jan 19, 2025	100%	Part II, Line 14

How IRS Form 4562 ordering rules work

When depreciating business assets placed in service during 2026, the IRS applies a strict three-tier ordering rule on Form 4562: (1) Section 179 expensing (Part I) is taken first, capped at $2,560,000 ($32,000 for heavy SUVs) and limited to your aggregate taxable business income on Line 11; (2) Special Bonus Depreciation (Part II, Line 14) is applied second to the remaining basis after Section 179 (and can create a net operating loss even if business income is $0); and (3) Regular MACRS GDS depreciation (Part III, Line 19) applies the half-year convention percentage (20% for 5-year property, 14.29% for 7-year property) to any remaining unrecovered basis.

IRS Form 4562 Worked Example: Heavy SUV $32,000 Cap + 100% Bonus Depreciation

A business buys a $90,000 heavy SUV (6,800 lbs GVWR) used 100% for business in 2026 with $250,000 of business income. On Form 4562 Part I, Section 179 is capped at $32,000 for heavy SUVs, leaving $58,000 of remaining basis. Under 100% Part II bonus depreciation (or 20% if legacy schedule is selected), the remaining $58,000 is expensed on Line 14, giving a total Line 22 first-year deduction of $90,000 and saving $28,800 in tax at a 32% marginal rate.

Common questions

What is the 2026 Section 179 limit on Form 4562?

For tax year 2026, the maximum Section 179 deduction on Form 4562 Line 1 is $2,560,000, and the phaseout threshold on Line 3 begins when total qualifying equipment placed in service exceeds $4,090,000.

What is the 2026 Section 179 limit for a heavy SUV over 6,000 lbs?

Under IRC § 179(b)(5) and Rev. Proc. 2025-32, the 2026 Section 179 expensing cap for a sport utility vehicle rated between 6,000 and 14,000 pounds GVWR is $32,000, though remaining basis still qualifies for bonus and MACRS depreciation.

Can Section 179 create a net business loss on Schedule C?

No. Form 4562 Line 11 caps your current-year Section 179 deduction at your aggregate taxable income from all active trades or businesses (any disallowed excess carries forward on Line 13), whereas Part II bonus depreciation is not subject to the business income limit.

Sources

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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.