Answers · Deductions, assets & depreciation
What Is Bonus Depreciation?
Under current law, qualifying property acquired after Jan. 19, 2025 generally may qualify for 100% special depreciation allowance, subject to eligibility rules and elections. Form 4562 instructions and current IRS guidance should be checked for the placed-in-service year.
How it works
The rule, and what it turns on.
Current federal bonus depreciation can allow immediate cost recovery for qualifying property, but property type, acquisition/placed-in-service dates and elections matter.
Example
Qualifying 2026 equipment may be eligible for 100% federal bonus; state treatment can differ.
Common mistakes
What we see go wrong, and what we do instead.
- Applying bonus to land/nonqualifying buildings.
- Ignoring state conformity.
A better approach
- Model regular MACRS or §179 when full bonus is not desirable.
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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