The One Big Beautiful Bill Act made 100% bonus depreciation permanent for businesses that purchase and place into service qualified new or used property after Jan. 19, 2025. However, for 2025 only, you can choose to use the old 40% bonus depreciation rate. Why would you do this? You may want to save more tax in 2025 than you would following normal depreciation but preserve some deductions for the future. For example, if you anticipate being in a higher tax bracket next year, deductions will be more valuable. Another reason is to prevent large net operating losses, which 100% bonus depreciation can create. Talk to us about strategies for managing your business’s 2025 taxable income. Contact us if you have questions. © 2025