Quick Answer
Yes, the 2026 tax law introduced major depreciation changes for freelancers. The Section 179 deduction limit increased to $1.2 million, but bonus depreciation dropped to 60% for 2026. Equipment under $3,000 can now be expensed immediately under the new de minimis safe harbor for freelancers.
Best Answer
Priya Sharma, Small Business Tax Analyst
Best for freelancers with moderate equipment purchases ($5,000-$50,000 annually)
What changed for freelancer equipment depreciation in 2026?
The One Big Beautiful Bill Act of 2025 restructured depreciation rules significantly, creating both opportunities and complications for freelancers. Here are the key changes affecting your equipment purchases:
Section 179 deduction increased dramatically: The limit jumped from $1.16 million in 2025 to $1.2 million in 2026, with the phase-out threshold rising to $3 million in total equipment purchases.
Bonus depreciation decreased: After being 80% in 2025, bonus depreciation dropped to 60% for 2026 and will continue declining by 20% annually until it reaches zero in 2027.
New de minimis safe harbor: Equipment costing $3,000 or less can now be expensed immediately by freelancers, up from the previous $2,500 threshold.
Example: $15,000 in freelancer equipment purchases
Let's say you're a full-time freelancer who bought these items in 2026:
Here's how you could depreciate this equipment:
In this scenario, you could deduct the entire $13,500 in 2026 using a combination of Section 179 and the de minimis safe harbor.
Key factors that determine your best strategy
How this compares to previous years
Under the old rules (pre-2026), you would have faced these limitations:
The new rules generally favor freelancers making moderate equipment investments while creating more complexity for strategic tax planning.
What you should do
Track all equipment purchases throughout 2026 and categorize them by cost. For items under $3,000, claim the de minimis safe harbor. For larger purchases, evaluate whether Section 179 or bonus depreciation provides better tax benefits based on your income level and overall equipment spending.
Use our deduction finder tool to automatically calculate the optimal depreciation strategy for your specific equipment purchases and income situation.
Key takeaway: The 2026 changes generally benefit freelancers through higher Section 179 limits ($1.2M) and easier immediate expensing for equipment under $3,000, despite bonus depreciation dropping to 60%.
*Sources: [IRS Publication 946](https://www.irs.gov/pub/irs-pdf/p946.pdf), One Big Beautiful Bill Act of 2025 Section 3201*
Key Takeaway: The 2026 changes generally benefit freelancers through higher Section 179 limits ($1.2M) and easier immediate expensing for equipment under $3,000, despite bonus depreciation dropping to 60%.
2025 vs 2026 depreciation rules comparison for freelancers
| Rule | 2025 | 2026 | Change |
|---|---|---|---|
| Section 179 Limit | $1.16 million | $1.2 million | +$40,000 |
| Bonus Depreciation | 80% | 60% | -20 percentage points |
| De Minimis Safe Harbor | $2,500 | $3,000 | +$500 |
| Phase-out Threshold | $2.89 million | $3.0 million | +$110,000 |
More Perspectives
Priya Sharma, Small Business Tax Analyst
Best for freelancers with substantial equipment investments and higher tax brackets
Strategic considerations for high-earning freelancers
As a high-earning freelancer, the 2026 depreciation changes create both tax planning opportunities and potential pitfalls that require careful consideration.
The Section 179 phase-out matters more for you: While the limit increased to $1.2 million, it starts phasing out when your total equipment purchases exceed $3 million. This rarely affects individual freelancers, but if you're purchasing vehicles, major software licenses, or substantial office buildouts, monitor this threshold.
Timing becomes critical with declining bonus depreciation: At 60% in 2026, 40% in 2027, and 0% afterward, front-loading major equipment purchases into 2026 can save substantial taxes. A $50,000 studio setup purchased in 2026 gets $30,000 in bonus depreciation versus $20,000 if purchased in 2027.
Example: Strategic equipment timing for $200K freelancer
Consider a freelance consultant earning $200,000 who needs $75,000 in equipment over two years:
2026 purchase (recommended):
Split purchase (2026: $40K, 2027: $35K):
The timing advantage comes if you exceed Section 179 limits and need bonus depreciation as backup.
Key takeaway: High earners should accelerate major equipment purchases into 2026 to capture 60% bonus depreciation before it decreases further, while using Section 179 for optimal immediate deductions.
Key Takeaway: High earners should accelerate major equipment purchases into 2026 to capture 60% bonus depreciation before it decreases further, while using Section 179 for optimal immediate deductions.
James Okafor, Self-Employment Tax Specialist
Best for business consultants with client-specific equipment and technology needs
Consultant-specific depreciation strategies
As a consultant, your equipment purchases often serve multiple clients and may have unique depreciation considerations under the 2026 rules.
Mixed-use equipment requires careful allocation: If you use a $5,000 laptop 70% for consulting and 30% personally, only $3,500 qualifies for business depreciation. The new de minimis rule doesn't help here since the business portion exceeds $3,000.
Client-specific equipment may qualify for different treatment: Software subscriptions, specialized tools, or industry-specific equipment purchased for particular consulting engagements might be better treated as direct project costs rather than depreciated assets, depending on the engagement structure.
Example: Technology consultant equipment strategy
A technology consultant purchases:
Optimal approach:
Documentation is crucial: Consultants must maintain detailed records showing business use percentages and client allocation, especially for equipment used across multiple projects.
Key takeaway: Consultants benefit most from the new rules when they can clearly document 100% business use, making the higher de minimis threshold ($3,000) particularly valuable for specialized consulting tools.
Key Takeaway: Consultants benefit most from the new rules when they can clearly document 100% business use, making the higher de minimis threshold ($3,000) particularly valuable for specialized consulting tools.
Sources
- IRS Publication 946 — How To Depreciate Property
- One Big Beautiful Bill Act Section 3201 — 2026 Depreciation Rule Changes
Related Questions
Reviewed by Priya Sharma, Small Business Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.