U.S. · Tax forms
Form 4562 line 1, maximum amount.
The 2025 section 179 dollar limit, how Worksheet 1 sets line 1, and the recapture rule.
Line 1 (“Maximum amount”) is generally $2,500,000 for section 179 property placed in service in a tax year beginning in 2025. Worksheet 1 in the instructions sets the entry: it is the smaller of that cap and the total cost of your eligible section 179 property.
Look up a row
Result
What the 2025 Form 4562 says
| Item | Meaning | What the IRS says |
|---|---|---|
| Maximum for 2025 | $2,500,000 | Generally, the maximum section 179 expense deduction is $2,500,000 for section 179 property (including qualified section 179 real property) placed in service during the tax year beginning in 2025 |
| Worksheet 1, line 1 | Total eligible cost | Enter total cost of section 179 property (including qualified section 179 real property) placed in service during the tax year; include the total eligible amount, not just the amount you are electing |
| Worksheet 1, line 3 | Smaller of cost or cap | Enter the smaller of the worksheet line 1 or the $2,500,000 maximum |
| Worksheet 1, line 4 | Your Form 4562 line 1 | Enter the amount from worksheet line 3 on Form 4562, line 1 |
| Basis reduction | Caution | If you elect to expense section 179 property, reduce the amount on which you figure depreciation or amortization (including any special depreciation allowance) by the section 179 deduction |
| Recapture rule | Under 50% business use | If section 179 property is not used predominantly (more than 50%) in your trade or business at any time before the end of its recovery period, the benefit must be reported as “other income” |
| Entity limits | Apply at each level | For a partnership, the limits apply to the partnership and each partner; for an S corporation, to the corporation and each shareholder; a controlled group is one taxpayer |
Line 1 is not always the full cap
The label is just “Maximum amount (see instructions).” Worksheet 1 shows why: it takes the smaller of the dollar cap and the cost of the section 179 property you placed in service. If you placed only $1,800,000 in service, line 1 is $1,800,000, not $2,500,000.
The reduction on lines 3 and 4
The cap shrinks when total cost passes the threshold on line 3. Line 4 is line 2 less line 3 (not below zero), and line 5, the dollar limitation for the year, is line 1 less line 4. The line 3 page covers that step.
Recapture
If the property stops being used mainly in your trade or business before the end of its recovery period, the section 179 benefit comes back as other income. The instructions also list similar rules for disaster assistance, empowerment zone and other area-based property.
Worked example
Sam placed $1,800,000 of qualifying equipment in service in 2025. Worksheet 1: line 1 is $1,800,000, line 2 is $2,500,000, line 3 is the smaller, $1,800,000, and that amount goes on Form 4562, line 1. Form 4562 line 2 also shows $1,800,000. Names and figures are made up.
More line pages in this set
Related lines: Form 4562 Line 3, Form 4562 Line 11.
Sources
- Instructions for Form 4562 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 4562, Depreciation and Amortization (2025): the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 form and instructions. Line labels were read from the IRS PDF posted on the date read; line numbers, dollar limits and cutoff years change between editions, so check them against the form for your tax year. The dollar amounts are for the 2025 tax year and change by year. Names in worked examples are made up.
Frequently asked questions
What is the line 1 maximum for 2025?
Generally $2,500,000 for section 179 property placed in service during the tax year beginning in 2025.
Is line 1 always $2,500,000?
No. Worksheet 1 sets line 1 to the smaller of the cap or the total cost of your section 179 property.
Does electing section 179 change depreciation?
Yes. You must reduce the amount on which you figure depreciation or amortization by the section 179 deduction.
What is the recapture rule?
If the property is not used predominantly in your trade or business at any time before the end of its recovery period, the benefit is reported as other income.
Do these limits apply to partners?
Yes. They apply to the partnership and to each partner, and to an S corporation and each shareholder.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.