Section 179
Section 179 is an election to expense the cost of qualifying property in the year it is placed in service. An annual dollar limit applies and phases out as total qualifying purchases rise. The deduction is also limited by the taxpayer's business taxable income.
Why Does Section 179 Matter in a Laundromat Sale?
Section 179 and bonus depreciation are separate provisions that often apply to the same laundromat equipment purchase, with different limits and different interactions. For tax years beginning in 2025 the Section 179 limit is $2.5 million with phaseout beginning at $4 million, both indexed after 2025 (Source: IRS, OBBBA business provisions). The taxable-income limitation matters for a first-year buyer whose business income may be small.
What Does It Look Like in Practice?
A buyer retooling in year two spends $190,000 on qualifying equipment. Which provision produces the better result depends on the entity, other income, state conformity, and future-year planning — a question for the buyer's CPA, not a rule of thumb.
What Should You Check?
- Check the annual limit, the phaseout threshold, and the taxable-income limitation.
- Compare the result against bonus depreciation rather than assuming one is better.
- Plan across years; expensing everything in year one is not always optimal.
Where Does This Come Up?
- Bonus Depreciation
- Laundromat Retool Cost: The Full Scope Most Estimates Miss
- Financing a Laundromat Retool Without Breaking Cash Flow
- Laundromat Valuation: How Stores Are Priced and Why
- Sell My Laundromat: The Confidential Sale Process, Start to Close
Related Terms
- Bonus Depreciation — Bonus depreciation is an additional first-year deduction allowing immediate expensing of eligible property rather than recovery over its normal life
- FF&E — FF&E stands for furniture
- Retool — A retool is the replacement of a laundromat's equipment package
See the full laundromat glossary for all 78 terms.
The Next Step
Sources
- IRS, Working families tax cuts: businesses — https://www.irs.gov/newsroom/working-families-tax-cuts-businesses
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.