Toggle navigation
Start Here
Find a Service Provider
Browse the Library
Federal and State Programs
Carbon Sequestration
Conservation Tax Center
Land and Energy Conservation Tools
Sustainable Land Management
Tree Farms
Wetlands and Wildlife
!-->
LandCAN Sites
Arkansas LandCAN
California LandCAN
Colorado LandCAN
Georgia LandCAN
Idaho LandCAN
Louisiana LandCAN
Maine LandCAN
Mississippi LandCAN
Texas LandCAN
Virginia LandCAN
HabitatCAN
Connect
About LandCAN
Get To Know LandCAN
What We Do
Mission & Values
Our People
Our Partners
2022 Annual Report
2021 Annual Report
2020 Annual Report
2019 Annual Report
LandCAN Blog
LandCAN Success Stories
-->
Earthx Conservation Sessions
!-->
Donate
Create an Account
Sign In
Advertise with LandCAN
A video about us
Contact
Sign In
Donate
A video about us
LandCAN Library
LandCAN Library
Home
>
LandCAN Library
>
Bonus Depreciation
LandCAN Library
Are you considering the value of carbon in your soil?
For more information, visit:
Bonus Depreciation
By:
Breana Behrens
The special deprecation allowance (bonus depreciation) is an additional tax deduction, available after a Section 179 deduction, for the cost of qualifying property purchased for business use.
The special depreciation allowance, or Bonus Depreciation, allows a business to deduct half of the cost of qualifying property from your tax return for the year it is placed in service.
How it works:
After you take a Section 179 deduction, the bonus depreciation allows you to take an additional deduction of 50% of the property's depreciable basis, or how much it cost. However, unlike a Section 179 deduction, it is only available for new equipment. The equipment must also have been bought and put into use the same year you are filing your tax return for.
The bonus depreciation is generally most helpful for larger businesses that spend a large amount on new equipment each year.
Property that qualifies for Bonus Depreciation:
Tangible property depreciated under MACRS with a recovery period of 20 years or less.
Water utility property.
Off-the-shelf computer software.
Qualified leasehold improvement property.
Property that does not qualify for special depreciation allowance:
Property placed in service and disposed of in the same tax year.
Property converted from business use to personal use in the same tax year it is acquired. Property converted from personal use to business use in the same or later tax year may qualify
Property required to be depreciated under the alternative depreciation system (ADS).
Property included in a class of property for which you elected not to claim the special depreciation allowance.
Property for which you elected to accelerate certain credits in lieu of the bonus depreciation allowance.
Note: the bonus depreciation provision expires at the end of each year and must be renewed by Congress on an annual basis, so be sure to check that it is available for the year that you are filing.
Reminder:
The views and opinions expressed in this reposted content do not necessarily reflect those of LandCAN. This material is shared for informational purposes only and does not constitute an endorsement of the practices or viewpoints presented.
×
Accept Cookies
By using our website you are consenting to our use of cookies in accordance with our
privacy policy
.