Definition
A tax rule that lets a business deduct the cost of qualifying equipment in the year it is placed in service instead of spreading it over several years.
What it means
Normally the cost of business property that lasts more than a year, such as cameras, computers, lighting or furniture, is recovered gradually through depreciation. Section 179 of the Internal Revenue Code lets a business elect to deduct all or part of the cost of qualifying property in the year it starts being used for business, up to an annual dollar limit that phases out for businesses buying large amounts of property. The deduction cannot exceed the business's taxable income from active trades or businesses, though unused amounts can be carried forward. The property must be used more than half for business. The election is made on Form 4562 and the current limits are explained in IRS Publication 946.
Example
A creator who buys a $2,400 camera used 100% for her channel may elect to deduct the full $2,400 this year instead of depreciating it over several years.
Illustrative numbers only. Your situation will differ.