💥 Big Beautiful Tax Bill – Part 6 💥
When you purchase qualifying business assets, you often have the chance to deduct the entire cost in the year you start using them. The two main ways to do this — Bonus Depreciation and Section 179 — both get you there, but in very different ways.
Bonus Depreciation – All at Once
Bonus Depreciation applies across an entire asset class. Once you choose it, you’re deducting the full value of every qualifying asset in that category for the year. That’s great for a big tax break now — but it removes your ability to spread out deductions for future years.
Section 179 – Pick and Choose
Section 179 gives you more control. You can apply it to some assets and depreciate others over time. This approach allows you to line up deductions with your income patterns, avoiding the “deduction overload” that can happen with Bonus Depreciation.
Which Should You Use?
The right choice depends on your income, future spending plans, and long-term tax strategy. In some situations, the best move is to use a combination of both methods.
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