Yes, 100% bonus depreciation is available and has been permanently reinstated for qualifying property acquired and placed in service after January 19, 2025, under the One Big Beautiful Bill Act (OBBBA). This allows businesses to deduct the full cost of eligible assets (e.g., equipment, machinery,, furniture) in the first year.
Yes, you can still take 40% bonus depreciation in 2025 for property acquired on or before January 19, 2025, but for property acquired after January 19, 2025, 100% bonus depreciation is generally reinstated under the One Big Beautiful Bill Act (OBBBA) (OBBBA), though you can elect the 40% rate if it's more beneficial. The OBBBA effectively reversed the previous phase-down, making 100% bonus depreciation permanent for new acquisitions after the cutoff date, with options for strategic planning.
The rules allowed bonus depreciation to 100% for all qualified purchases made between September 27, 2017, and January 1, 2023. Bonus depreciation ramped down to 80% in 2023 and 60% for 2024. The OBBBA reinstated 100% bonus deprecation for 2025 and beyond.
Useful life: To qualify for bonus depreciation, the asset must have a useful life of 20 years or less. For example, a building wouldn't be eligible for bonus depreciation, but a vehicle or piece of equipment would be. Listed property: This type of asset can be used for business and personal purposes.
WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2026-11 PDF that provides taxpayers with guidance on the permanent 100% additional first year depreciation deduction for eligible depreciable property acquired after Jan. 19, 2025, provided by the One, Big, Beautiful Bill.
On July 4, 2025, President Trump signed the 2025 tax reform into law as P.L. 119-21, Republicans' “One Big Beautiful Bill.” Among its most impactful provisions is the permanent restoration of 100% bonus depreciation, offering long-term clarity for tax planning and capital investment strategies.
Yes, in 2024, each parent could gift $18,000 to a child (totaling $36,000 per child for the couple) without tax implications, and for 2025, that amount increased to $19,000 per parent ($38,000 per child) because the annual gift tax exclusion is adjusted for inflation, requiring separate checks for each parent to utilize the full amount, according to TurboTax, Yahoo Finance, Guardian Life, IRS (.gov), and Mercer Advisors.
The main downsides of bonus depreciation include losing future deductions by taking them upfront, potentially increasing future taxable income, facing higher "recapture" taxes if the asset is sold, and dealing with complex rules or state-level nonconformity, making it less beneficial for short-term investors or those in lower tax brackets who might need deductions later. It also creates large upfront tax benefits that might not align with book income, affecting financing, and rules change frequently, requiring constant tax planning.
If the vehicle weighs more than 6,000 pounds and is used more than 50% for business, you can write off up to $28,900 in the first year, and potentially even more with bonus depreciation. Let's break it down: Buy a qualifying vehicle for $60,000, and you could write off a large portion of that cost in year one.
Section 179 deductions are also limited to annual taxable business income, meaning that a business cannot deduct more money than it made. Bonus depreciation does not have this limit and can be used to create a net loss.
At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once. Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026.
While residential rental properties themselves (with a useful life of 27.5 years) and commercial buildings (39 years) don't qualify for bonus depreciation due to their longer recovery periods, many components within and improvements to these properties do qualify.
Electing out will allow you to offset the higher income with more depreciation expense in the later years. If you plan to sell the purchased property in a year in which you are in a higher tax bracket, any depreciation recapture would be taxed at the higher rate.
Only vehicles with a GVWR over 6,000 lbs qualify for 100% bonus depreciation without luxury auto limits.
Bonus depreciation is back. 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.
Property owners and investors should pay attention here. The OBBB — which was the Trump administration's signature tax and domestic policy bill — officially reinstated 100% bonus depreciation for property acquired after January 19, 2025, and placed in service after that same date.
100% bonus depreciation qualifies for tangible business assets with a Modified Accelerated Cost Recovery System (MACRS) recovery period of 20 years or less, including machinery, equipment, furniture, vehicles, software, and qualified real property improvements, provided the original use starts with the taxpayer and it's acquired and placed in service after January 19, 2025, under the new One Big Beautiful Bill Act (OBBB). Specific rules also apply to used property and qualified production property, allowing immediate write-offs for many capital investments.
Tax Relief Act of 2014
allows 50% bonus depreciation for qualified property placed in service between 1/1/14 and 12/31/14.
At a glance:
Any gifts exceeding $19,000 in a year must be reported and contribute to your lifetime exclusion amount. You can gift up to $13.99 million over your lifetime without paying a gift tax on it (as of 2025).
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
The IRS primarily learns about large gifts when you file Form 709, the Gift Tax Return, for amounts exceeding the annual exclusion (e.g., $19,000 per person in 2025). They can also discover gifts through third-party reporting (banks reporting large cash transfers), audits of your estate, or by matching transactions to public records, especially for significant asset transfers like property, which might trigger property tax reassessments.