It’s back—and it’s permanent!
100% Bonus Depreciation has officially returned for small business owners, giving you a powerful opportunity to write off qualifying purchases in full the year you place them in service.
In Part 5 of our Big Beautiful Tax Bill video series, we break down everything you need to know about this powerful deduction and how to make the most of it.
What Is 100% Bonus Depreciation?
Bonus depreciation allows business owners to immediately deduct the full cost of certain business assets, instead of spreading the deduction out over several years.
This strategy helps you:
- Lower taxable income
- Improve cash flow
- Reinvest savings back into your business
And the best news? It’s not temporary anymore—100% bonus depreciation is now permanent.
What Qualifies?
The list of qualifying assets is broader than many business owners think. Here are a few common purchases that typically qualify:
✅ New or used equipment (e.g., machinery, tools, etc.)
✅ Computers and office technology
✅ Office furniture
✅ Vehicles (including heavy SUVs and trucks over 6,000 lbs.)
✅ Certain leasehold, retail, and restaurant improvements
To qualify, the asset must be:
- Used in your trade or business
- Depreciable under MACRS
- Placed in service during the tax year
Unlike Section 179, which generally requires new-to-you purchases, bonus depreciation applies to both new and used property, as long as it’s the first time you’re using it for business.
Why It Matters for Small Businesses
Let’s say you purchase a $45,000 truck for your landscaping business. Under bonus depreciation, you may be able to deduct the full $45,000 in the year of purchase—immediately lowering your taxable income.
For growing businesses, this deduction is a game-changer. It can dramatically reduce your tax liability and free up capital to hire, upgrade systems, or expand.
Final Thoughts
If you’re planning any big business purchases this year—especially before year-end—now’s the time to act.
Bonus depreciation is back, it’s permanent, and it’s one of the most valuable tax planning tools available to small business owners.
🎥 Watch the full breakdown in Part 5 of our Big Beautiful Tax Bill video series here
📚Want more practical tax tips for small business owners?
Check out our full Big Beautiful Tax Bill series and other blog posts here.
📞 Want to know how this applies to your business?
Book your free discovery call here, and we’ll build a tax strategy that works with your numbers.