Section 179 vs Bonus

Bonus

• reduce taxable income.

• amount not limited to taxable income.

• no annual limit.

• can apply to new or used.

• bonus depreciation allowed on residential rental property.

• electing bonus is for all assets with chosen class.

Section 179

• reduce taxable income but not below 0.

• amount limited to taxable income.

• annual limit for 2023 is 1,160,000.

• can apply to new or used.

• not allowed on residential rental property.

• deduction can be 1 or more assets, not just chosen class.

Deduct more of the cost upfront.