Bonus depreciation has undergone significant changes over the past few years. Once at 100%, it dropped to 80% in 2023 and will decrease further to 60% in 2024. This means if you purchase a $1,000 item, only $600 can be deducted immediately, with the remaining $400 subject to straight-line depreciation. Tune in to learn how these adjustments could impact your tax planning, and don’t forget to budget accordingly!
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Bonus depreciation. It is an amazing thing. And for up until, what, 2023, 2022, I guess 2022, it was 100%. I go out and buy a computer. I got to spend 100% of that right off my taxes in that first year. 2023 comes along and they basically said, nope, we’re going to go to 80%. And now they’re going to go 2024. We’re going to go down to 60%. 60%. So now you buy that computer for a thousand dollars. We’re only deducting 600 of it. The other four will be straight line depreciation. Make sure you budget that in when you’re thinking about taxes. 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7. WTN.