A copier can qualify for the Section 179 deduction if you buy it or finance it with a $1-out lease and it is installed and in use by December 31. With a fair market value (FMV) lease, you generally deduct the monthly payments as a business expense instead. Section 179 lets a business deduct the full cost of qualifying equipment in the year it starts using it, instead of spreading the cost over several years. This guide explains how it applies to copiers, multifunction printers (MFPs), printers and software, and why the installation date matters more than the order date.
What is Section 179?
Section 179 of the Internal Revenue Code lets a business choose to expense the cost of qualifying business property in the year the property is placed in service. Without it, you would normally recover the cost of a copier through depreciation over several years. Office equipment such as copiers and printers is a common example of the property it covers.
For tax years beginning in 2026, the maximum Section 179 deduction is $2,560,000. That limit is reduced dollar for dollar once a business places more than $4,090,000 of Section 179 property in service during the year. Both figures come from IRS Revenue Procedure 2025-32. Most small and mid-size offices are far below these limits, so a copier or a few printers will not come close to the cap.
Two other rules from IRS Publication 946 are worth knowing. The equipment must be used more than 50% for business. And the Section 179 deduction generally can’t be larger than your taxable income from the active conduct of your business, although unused amounts can usually be carried forward.
What office equipment qualifies
- Copiers and MFPs that print, copy, scan and fax.
- Office and production printers, including wide-format machines.
- Accessories bought with the machine, such as finishers, booklet makers, extra paper trays and fax kits.
- Off-the-shelf software, such as print management or scanning software that is available to the general public and not custom-built for you.
- Computers and network equipment used for the business.
Paper, toner and the cost-per-page service charges are not equipment. They are generally deducted as ordinary business expenses when you pay them.
The real deadline: placed in service by December 31
Section 179 is based on when the equipment is placed in service, not when you order it or pay for it. The IRS treats property as placed in service when it is ready and available for its intended use. For a copier, that usually means delivered, installed, connected to your network and ready to print and scan.
For a business on a calendar tax year, that means December 31. If your business uses a fiscal year, the deadline is the last day of your tax year.
| Scenario (calendar-year business) | Likely tax year for the deduction |
|---|---|
| Ordered in November, installed in early December | 2026 |
| Ordered mid-December, installed and working December 29 | 2026 |
| Delivered December 30, not set up until January | Likely 2027 |
| Paid in full in December, installed in January | 2027 |
December is a busy month for deliveries, and offices close for the holidays. Treat early December as your practical deadline to sign, so installation and setup can happen before the year ends.
Is a copier lease tax deductible?
Generally, yes, but how you deduct it depends on the type of lease. Your lease agreement should say which type you have. See our guide to copier lease agreements for how to read one.
| Purchase (cash or loan) | $1-out lease (finance or capital) | FMV lease (operating) | |
|---|---|---|---|
| Treated as owner for tax | You | Generally you | Generally the leasing company |
| Section 179 | Generally qualifies | Generally qualifies, like a purchase | Generally does not apply |
| How you deduct it | Section 179 or depreciation | Section 179 or depreciation, plus the interest portion of payments | Monthly payments as a business expense |
| Cash upfront | Full price or a down payment | Little or none | Little or none |
| End of term | You own it | You own it for $1 | Return, renew, buy or upgrade |
A $1-out lease is usually treated as a purchase financed over time. That can let a business deduct the full equipment cost in the first year while paying for it over 36 to 60 months. An FMV lease keeps payments lower and lets you upgrade at the end, but the deduction is spread across the payments. Our guide to printer leasing vs. buying compares the two in more detail.
What about bonus depreciation?
Bonus depreciation is a separate first-year deduction. The One Big Beautiful Bill Act, enacted in 2025, made a permanent 100 percent bonus depreciation deduction available for qualified property acquired after January 19, 2025, as described in IRS Notice 2026-11. Unlike Section 179, bonus depreciation is not capped at a dollar amount, and your CPA may use it together with Section 179 or instead of it.
State rules can differ from federal rules. North Carolina and Virginia have not fully followed federal bonus depreciation in past years, so ask your CPA how the deduction affects your state return.
How to hit the December 31 deadline
- Start in November. Check your current print volume, color use and paper sizes, and when your current lease ends.
- Get a written quote. Compare purchase, $1-out and FMV options side by side on total monthly cost.
- Talk to your CPA. Confirm which option fits your tax situation this year.
- Sign by early December. This leaves time for delivery, installation, network setup and staff training before the holidays.
- Keep your records. Save the invoice or lease, plus the delivery and installation paperwork that shows the in-service date.
This is not tax advice
This article is general information, not tax, legal or accounting advice. Tax rules change, and how they apply depends on your business. Talk to your CPA or tax advisor before you make a purchase or leasing decision based on a deduction.
Frequently asked questions
Does an FMV copier lease qualify for Section 179?
Generally, no. With an FMV lease the leasing company is usually treated as the owner, so you deduct your lease payments as a business expense instead.
Does a $1-out copier lease qualify for Section 179?
It generally can. A $1-out lease is usually treated like a purchase, so the equipment may qualify if it is placed in service during the tax year. Confirm with your CPA.
What if my copier is delivered in December but installed in January?
The deduction is based on when the copier is ready and available for use, not when it arrives. If it isn’t installed and working until January, the deduction likely moves to the next tax year.
What is the Section 179 limit for 2026?
For tax years beginning in 2026, the limit is $2,560,000, reduced once total Section 179 purchases for the year exceed $4,090,000, according to IRS Revenue Procedure 2025-32.
Get your copier installed before December 31
Titan Office Solutions sells and leases copiers across North Carolina, South Carolina and Virginia, with FMV and $1-out lease options and toner, parts and service included in our leases. We’ll do a free print assessment, send a written quote within 24 hours, and schedule installation so your equipment is in service before year end. Compare purchase options, explore copier leasing or request a free quote.