The post 100% Bonus Depreciation Is Back—Here’s What Businesses Need To Know appeared on BitcoinEthereumNews.com.

Thinking of growing your business? Bonus depreciation is back. getty Business owners got their wish in 2025 when Congress made 100% bonus depreciation permanent. The provision, which was initially part of the 2017 Tax Cuts and Jobs Act (TCJA), began to phase out in 2023. However, the One Big Beautiful Bill Act (OBBBA) permanently reinstated the deduction for qualifying property. The IRS has now issued guidance on the deduction for eligible depreciable property acquired after January 19, 2025. The notice also provides guidance on certain qualified sound recording productions that OBBBA added as property that may be eligible for the additional first-year depreciation deduction. Here’s what you need to know. What Is Bonus Depreciation? Generally, when taxpayers acquire property for business use, they must depreciate it over several years based on various depreciation schedules. With 100% bonus depreciation, however, businesses can immediately deduct 100% of the cost of eligible new or used business property in the year it is used, or placed in service. (What you and I call “bonus depreciation” is the tax code’s “additional first-year depreciation deduction” under section 168(k).) Why Do Businesses Like Bonus Depreciation? The big plus is timing. Instead of recovering an asset’s cost over multiple years, bonus depreciation lets you deduct a large share—now 100% for many assets—in the year the property is placed in service, accelerating deductions and typically improving after-tax cash flow. What Does “Placed in Service” Mean? For depreciation purposes, property is considered placed in service when it is ready and available for a specific use, even if it is not yet actually used. What If I Have a Contract to Buy Something? Whether property qualifies for bonus depreciation depends on when it is acquired, but when you can actually take the deduction depends on when the property is placed in…

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Filed under: News - @ January 15, 2026 3:25 pm