{"id":195093,"date":"2024-11-11T01:30:04","date_gmt":"2024-11-11T09:30:04","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=195093"},"modified":"2024-11-13T13:29:58","modified_gmt":"2024-11-13T21:29:58","slug":"bonus-depreciation-section-179-difference","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/bonus-depreciation-section-179-difference\/","title":{"rendered":"Bonus Depreciation vs. Section 179: What’s the Difference?"},"content":{"rendered":"

Updated November 11, 2024.<\/em><\/p>\n

When your business buys a piece of equipment, you\u2019re typically supposed to spread the tax deduction over the life of the asset. But why wait? The Section 179 deduction and bonus depreciation are two ways to get your entire tax break upfront.*<\/p>\n

Bonus Depreciation vs. Section 179<\/h2>\n

What\u2019s the difference between Section 179 and bonus depreciation? Section 179 lets business owners deduct a set dollar amount of new business assets for tax purposes, and bonus depreciation lets them deduct a percentage of the cost. Typically, both tax benefits can be used together, though you\u2019ll often find businesses utilize bonus depreciation once they have reached the Section 179 limit. In 2024, bonus depreciation is up to 60% of the purchase cost. Based on the\u00a02024 Section 179 rules<\/a>, Section 179 gives you more flexibility on when you get your deduction, while bonus depreciation can apply to more spending per year.<\/p>\n

When considering Section 179 vs. bonus depreciation, how do you know which works best for your business? Let\u2019s break down the main factors:<\/p>\n

Key Points for Section 179 Deduction<\/strong><\/h2>\n

The Section 179 deduction allows a taxpayer to deduct the cost of certain types of assets as an expense on their income taxes, meaning the cost of the equipment doesn\u2019t have to be capitalized and depreciated. Here\u2019s what that means for you:<\/p>\n