I just want to be sure, reading conflicting things or maybe I'm just too tired! If I elect out of Bonus depreciation for a particular class, can we take bonus depreciation next year if need be?
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It is my understanding that bonus depreciation is an option. You can choose not to take the bonus depreciation and continue with regular depreciation. TCJA has now added 100% bonus for "used property" and that I believe it will lead to more taxpayers choosing this over sec. 179 with its limitations especially where fill sec 179 deduction is limited by net profits.Originally posted by Super Mom View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Yes, the election out is only for that particular taxable year. The following year it would be required, unless you elect out again.Comment
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What is your opinion Sec. 179 vs. 100% bonus depreciation? I do realize certain states like mine don't recognize bonus depreciation!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Ignoring State restrictions, the 100% Bonus Depreciation will be preferable in almost all situations.
Offhand, I can only think of two situations where I would pick §179 over 100% Bonus, and those are unusual situations. (1) I want to manipulate the income to a specific dollar amount, so I use a partial §179 to achieve that specific dollar amount. (2) I don't want a loss year, and Bonus would create a loss. Using §179 would zero out the profit (unless it is on a 1040 and there is other earned income for it to offset), but the remaining §179 would carryover and could be fully utilized in the next year.Comment
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You got that right!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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