March 16, 2020 Section 179 of the tax code allows business taxpayers to deduct the cost of certain property as an expense when the property is first placed in service. Starting in 2018, the maximum deduction increased to $1 million. However, the deduction begins to phaseout at $2.5 million. This deduction applies to tangible property, such as machinery and equipment purchased for use in a trade or business. Eligible property includes qualified real property and certain property used to furnish lodging. Qualified real property includes improvements to roofs, HVAC, fire alarm systems and security systems to nonresidential real property. See IRS.gov for more information.