Introduction to Bonus Depreciation

Bonus Depreciation is a federal tax deduction for property that you acquire and purchase for use in an active trade or business.
Types of Assets
Section 1245 Property = “tangible” or “personal” property
Section 1250 Property = “real property”
What is Bonus Depreciation?
-Tax Cuts and Jobs Act of 2017 significantly increased the ability to utilize bonus depreciation
-generally applies to MACRS property that has a recovery period of 20 years or less
-bonus depreciation is phasing out starting in 2023
Also consider watching:
Introduction to Accelerated Tax Depreciation ➡️ Bonus Depreciation and Section 179
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Financial Statement Projections 101 ➡️ Conceptual Overview
• Financial Statement Pr...
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