Answers · Deductions, assets & depreciation
Section 179 vs. Bonus Depreciation
Section 179 and bonus depreciation both accelerate cost recovery but have different elections, limits, eligible property and state consequences.
How it works
The rule, and what it turns on.
Section 179 has annual dollar/phaseout and taxable-business-income limitations; bonus follows §168(k) eligibility and elections.
Example
A business may elect §179 on one asset and bonus on another to manage taxable income.
Common mistakes
What we see go wrong, and what we do instead.
- Assuming one is always superior.
A better approach
- Model federal, owner-level and state impact before choosing.
Authority
Where this comes from, so you can check it.
IRC §§167, 168 and 179; Treas. Reg. §1.167(a)-1; IRS Publication 946; Form 4562 and instructions.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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