Strategic Tax Planning: Bonus Depreciation vs Section 179

Businesses can combine bonus depreciation and section 179 depreciation, but...
Can Bonus depreciation create a tax loss?
Can Section 179 cannot create a tax loss?
What is Bonus Depreciation?
-Tax Cuts and Jobs Act of 2017 significantly increased the ability to utilize bonus depreciation
-includes property used in a trade or business or for the production of income and generally applies to MACRS property that has a recovery period of 20 years or less
What is Section 179?
-Section 179 allows a taxpayer to deduct a set dollar amount of qualified business property each year (qualified real property)
-applies to property used in an active trade or business
Full video here on tax depreciation: • Introduction to Accele...
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