Specialized Tax Preparation

Bonus Depreciation as a Tax Strategy for Offsetting Business income

What is Bonus Depreciation?

Bonus depreciation is a tax incentive under the U.S. Internal Revenue Code (Section 168(k)) that allows businesses, including royalty owners with qualifying assets, to immediately deduct a significant percentage of the cost of eligible assets in the year they are placed in service, rather than depreciating them over several years.

With the recent passage of the One Big Beautiful BIll (OBBB), bonus depreciation has been reinstated to 100% for qualifying assets placed in service during the tax year! This provides a significant opportunity for business owners looking to reduce their tax burden and build their infrastructure. Our CPA firm specializes in leveraging this enhanced tax incentive, along with other strategies, to minimize tax liabilities while ensuring compliance with the ever changing tax code.