Year-end equipment purchase tax savings estimator

Thinking about buying a laptop, tools, a machine or a POS system before Dec. 31? Estimate the 2026 federal, self-employment and CT or NC tax it could save, and what it still costs you.

Spending $1 to save about 30¢ isn’t free

At a 22% federal bracket plus self-employment and state tax, a $1 purchase may save about 30 to 40 cents. You are still out the rest. A write-off makes a needed purchase cheaper; it doesn’t make an unneeded one worth it.

What has to be true for a 2026 write-off

You buy it and place it in service (set up and ready to use) by Dec. 31, 2026. Ordering isn’t enough.
It’s used more than 50% for business to take Section 179. Vehicles also need more than 50% business use for bonus depreciation.
For Section 179, the deduction can’t be more than your business income. Bonus depreciation has no income limit.
The 2026 Section 179 limit is $2,560,000, reduced dollar for dollar once you place more than $4,090,000 of property in service.

Small items may not need depreciation at all. With the de minimis safe harbor election you can expense items up to $2,500 per item or invoice. See what qualifies for Section 179.

CT and NC don’t fully follow the federal write-off. Connecticut adds back 100% of bonus depreciation and 80% of Section 179, then lets you subtract 25% of the add-back in each of the next 4 years. North Carolina adds back 85% of bonus depreciation and limits Section 179 to $25,000 (phased out above $200,000), deducting the add-back 20% a year over 5 years. These are the 2025 state rules; check the 2026 forms when they come out.

Section 179 or bonus depreciation?

Both can write off 100% of qualifying equipment in 2026. Section 179 lets you pick exactly how much to deduct, item by item, but is limited to business income. Bonus depreciation applies to a whole class of property unless you elect out, and can create a loss. Your tax preparer can help you choose what fits your income this year and next.

Planning estimated payments? Use the quarterly tax guide and the CT self-employment tax calculator.

Where clients shop for business equipment

Laptops and computers on Amazon, printers and scanners on Amazon and office chairs on Amazon.
Home Depot: tools, ladders and job-site equipment for trades.
Square: POS hardware and card readers for shops and food trucks.
Keep every receipt and note the date each item was set up and used.

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Frequently asked questions

Does buying equipment in December really lower my 2026 taxes?

It can, if the equipment is placed in service by Dec. 31 and used mostly for business (more than 50% for Section 179). You still pay the full price; the tax saved is usually a fraction of it.

How much tax does a $10,000 purchase save?

It depends on your bracket. At 22% federal plus self-employment tax and CT state tax, a full write-off might save roughly $3,000 to $3,700 in year one. Use the estimator for your numbers.

Do CT and NC give the same write-off?

No. Connecticut spreads most of Section 179 and all bonus depreciation over the next 4 years. North Carolina limits Section 179 to $25,000 and spreads 85% of bonus depreciation over 5 years.

What happens if I sell the equipment later?

Part of what you wrote off can be taxed as ordinary income when you sell (depreciation recapture). The same applies if business use falls to 50% or less.

Sources (Checked November 2026)

Educational only. This is not tax or legal advice, and it is not investment advice. Tax rules change and every situation is different, so check the IRS (irs.gov), CT DRS (portal.ct.gov/drs) or NCDOR (ncdor.gov) and talk with a tax professional before you buy or file.

Want to plan a purchase around this year’s taxes?

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Or call (475) 242-7941.

Enhance Finance LLC · Andrew Nocera, Tax Preparer & Small-Business Finance Consultant. Serving all of Connecticut, and North Carolina clients remotely.

Not tax, legal or investment advice. Figures are estimates for education. Checked November 2026.