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Did you acquire a large vehicle for your business? Is it over 6000 pounds? If the answer to both of those is yes, there’s a chance you should consider bonus depreciation.
As long as you use your purchase for business, it doesn’t matter if it’s a tractor trailer, cargo van, or a luxury SUV, for the next four years you can immediately deduct a large percentage of the purchase price, rather than write them off over the "useful life" of that asset—as long as the vehicle weighs over 6000lbs.
You can also use bonus depreciation on other qualified property—depreciable assets with a recovery period of 20 years or less—including vehicles, furniture, manufacturing equipment, and heavy machinery. The could also includes computer software, water utility property, and qualified film, television, or live theatrical productions.
This benefit comes to an end in 2027 - and the % you can depreciate decreases every year on this schedule:
2023: 80%
2024: 60%
2025: 40%
2026: 20%
Please talk to a tax professional (perhaps one at Range) to make sure your large purchase qualifies before buying a bulldozer or industrial pizza oven. 🚜🍕
Related content:
Ask a Certified Financial Planner: Taxes
Five Reasons You Should Graduate From DIY to a CPA or Tax Professional
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