Planning tool
What a modular office or mezzanine costs after the deduction
Equipment placed in service this year can usually be expensed in full under Section 179, and what 179 does not cover, 100% bonus depreciation typically does. Enter the purchase and your marginal rate to see the first-year tax effect and the cash cost after it.
- 2026 Section 179 cap: $2,560,000, phase-out from $4,090,000 of total purchases.
- Bonus depreciation: 100%, permanent for property acquired after January 19, 2025.
- This is an estimate for planning, not tax advice. Your accountant confirms eligibility and the year.
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Request a quotationSection 179 + bonus depreciation, tax year 2026
- Cost basis (price + freight + installation)
- $56,500
- Section 179 deduction
- $56,500
- Bonus depreciation
- $0
- First-year deduction
- $56,500
- Left to depreciate in later years
- $0
- Estimated tax saved in year one
- $16,950
- Cash cost after the deduction
- $39,550
Section 179 is also limited to the year's taxable business income; bonus depreciation is not. Property must be placed in service in the tax year. Estimate only; confirm with your accountant.
Questions buyers ask
- Does a modular in-plant office qualify for Section 179?
- Modular offices sold as demountable, relocatable equipment are generally treated as tangible personal property (equipment) rather than a building improvement, which is what makes them eligible. Whether a specific installation qualifies depends on how it is attached and used; your accountant makes that call. Site-built drywall offices are usually a building improvement with a 39-year life.
- What are the 2026 limits?
- The Section 179 expensing cap is $2,560,000 and it phases out dollar for dollar once total qualifying purchases exceed $4,090,000. Bonus depreciation is 100% and permanent for qualifying property acquired after January 19, 2025.
- What is the difference between Section 179 and bonus depreciation?
- Section 179 is an election with an annual cap and a business-income limit; bonus depreciation has no cap and can create a loss. Many buyers use 179 first and bonus on the rest. The calculator shows both.
- Does freight and installation count?
- The cost basis normally includes what it takes to place the asset in service, which is why freight and installation are part of the number. Confirm treatment with your accountant.
Sources: IRS Publication 946 and Section 179 limits as published for tax year 2026; bonus depreciation per the 2025 tax act. Guides: Section 179 for modular buildings.