Bonus Depreciation 2024 Irs. Allows 50% bonus depreciation for qualified disaster area property generally placed in service after 12/31/07 for disasters declared after 12/31/07 and occurring before 1/1/10. Bonus depreciation is a significant tax incentive that allows businesses to immediately deduct a substantial portion of the purchase price of eligible assets rather than capitalizing and.

For example, if a business purchased new computer software in december 2023 but didn’t put it into service until january 2024, it would be required to wait until it filed its 2024 tax return. The bonus depreciation deduction under section 168(k) begins its phaseout in 2023 with a reduction of the applicable limit from 100% to 80%.