What is Section 179?
By Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC)
Definition
An election to deduct the cost of qualifying business property in the year it is placed in service, subject to dollar and income limits.
Where Section 179 matters
CPA (US): The global gold standard for accounting and audit. 4 Exams: 3 Core + 1 Discipline; 4 hrs Per section; 75 Passing score (0–99 scale); Prometric Test centres worldwide. Parts: FAR Financial Accounting & Reporting; AUD Auditing & Attestation; REG Taxation & Regulation.
CMA (US): The credential for management accounting and finance leadership. 2 Exam parts; 4 hrs Per part: 100 MCQs + 2 essays; 360 Passing score (0–500 scale); 3 yrs To complete both parts from your first. Parts: Part 1 Financial Planning, Performance and Analytics; Part 2 Strategic Financial Management.
Enrolled Agent (EA): The fastest route to practising US tax. 3 Exam parts (SEE); 3.5 hrs Per part: 100 MCQs; 105 Passing score (40–130 scale); 2 yrs To pass all three parts. Parts: Part 1 Individuals; Part 2 Businesses; Part 3 Representation, Practices and Procedures.
Related terms explained
MACRS: The Modified Accelerated Cost Recovery System, the main method for depreciating business property for tax purposes.
Schedule C: The schedule a sole proprietor uses to report business income and expenses on a personal tax return.
Guides that mention it
EA Part 2 study guide: Businesses: EA Part 2, Businesses, covers business entities, accounting methods, assets and depreciation, and specialised returns. Plan 60 to 100 hours, learn the forms for each entity, and practise basis and depreciation calculations.
How HiPrep teaches it
In HiPrep, Section 179 is taught concept-first and then practised in a Prometric-style simulator. Every answer is built step by step so you see how a result is reached, explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts. Start with the free diagnostic to see where Section 179 sits in your plan.