Sourdough 2025 / 2026

Section 179 lets you fully expense business gear in year one

Up to $1.25M in 2025; up to $2.5M in 2026 after OBBBA. Phone, laptop, dash cam, hot bag.

  1. The gear has to be used more than half the time for your gig work. The dollar limits are huge ($3.13M in 2025, $4M in 2026), so this never bites solo drivers.
  2. You claim Section 179 on Form 4562 with your return.
  3. Lower the business-use percentage, and the deduction drops with it.
  4. For cars, there's a separate cap (Section 280F) on top of the Section 179 limit. The full Section 179 amount only helps if the vehicle weighs over 6,000 pounds, so most SUVs and pickups qualify but most cars don't.

SourceIRC §179; IRS Rev Proc 2024-40 (2025 limit); OBBBA / P.L. 119-21 (2026 permanent base); Form 4562

Note. General information, not tax advice. Tips reflect federal law and California rules where noted, current as of May 2026. For advice specific to your situation, consult a licensed CPA or Enrolled Agent. Sourdough Tax, Inc. is not your tax advisor unless we have explicitly accepted that engagement in writing.