07/03/2025
👏🏽👏🏽👏🏽👏🏽 I huge boost to the company!!
100% Bonus Depreciation is back.
Purchases Eligible for 100% Bonus Depreciation in 2025
1. Tangible Property with a Recovery Period of 20 Years or Less:
• Machinery, equipment, vehicles, furniture, and certain building improvements.
• Must be depreciable under the Modified Accelerated Cost Recovery System (MACRS) with a recovery period of 20 years or less.
• Examples: Construction equipment, manufacturing machinery, office furniture, or business vehicles.
2. Qualified Improvement Property (QIP):
• Interior improvements to nonresidential real property (e.g., retail stores, offices, restaurants) made after the building was first placed in service.
• Examples: New lighting, HVAC systems, flooring, or other interior upgrades (excluding structural components or building expansions).
3. Certain Computer Software:
• Off-the-shelf software readily available for purchase with a nonexclusive license.
4. Water Utility Property:
• Property used in the collection, treatment, or distribution of water.
5. Qualified Film, Television, or Live Theatrical Productions:
• Production costs for qualifying productions under Section 181 of the Internal Revenue Code.
6. Qualified Sound Recording Production Costs (Newly Eligible):
• Up to $150,000 of costs.
7. Certain Plants:
• Specific fruit- or nut-bearing plants (e.g., trees or vines) used in a farming business.
8. Qualified Production Property (New Provision):
• Nonresidential real property used in qualified production activities (e.g., manufacturing, chemical or agricultural production, or refining tangible personal property) in the U.S.
• Must be newly constructed or acquired, with construction beginning after January 19, 2025, and before January 1, 2029, and placed in service before January 1, 2033.
• New or Used Property: Both new and used property qualify, provided it’s the taxpayer’s first use and not acquired from a related party.
• Business Use: Must be used in a trade or business or for income production.
(Grant Cardone)
