Bonus Depreciation

General information: Section 179 and bonus depreciation allow businesses to deduct the cost of qualifying assets upfront instead of depreciating them over time. Section 179 applies first, allowing deductions up to an annual limit, while bonus depreciation covers any remaining basis with no cap. They are not mutually exclusive and can be used together, with any leftover basis depreciated under MACRS. Bonus depreciation is phasing down after 2023, making strategic planning essential.