Bonus depreciation is a way to accelerate your depreciation write off. It allows a taxpayer to write off more of the cost of an asset upfront in the year the asset is placed in service.

The Tax Cuts and Jobs Act of 2017 (TCJA), allows a taxpayer to write off up to 100% of the cost of eligible property purchased after September 27, 2017 and before January 1, 2023, up from 50% under the prior law.


Property with a recovery period of 20 years or less – This typically includes land improvements, vehicles, equipment, furniture and fixtures, and machinery.

The TCJA expanded the definition of qualified property to now include USED property. Previously, only new assets were eligible for bonus depreciation.

Bonus depreciation can be a valuable tax break for your businesses! Remember, depreciation laws and limits are always changing. Please consult your tax professional to make sure it’s right for your business.


The 100% limit will begin to phase down 20% per year beginning in 2023 until it is fully phased out at the end of 2026.