Bonus depreciation is back at 100%, and Section 179 doubled

Property acquired after January 19, 2025 qualifies for 100% bonus depreciation in the year it is placed in service, and the old phase-down no longer applies. For the first tax year ending after that date, a taxpayer can elect 40% instead.

The Section 179 limit is $2,500,000, phasing out from $4,000,000 of purchases, for tax years beginning in 2025. For 2026 it is $2,560,000, phasing out from $4,090,000, with a $32,000 SUV cap.

• When was each asset acquired, not just placed in service? The January 19, 2025 date turns on acquisition.
• Does a full write-off now waste deductions the client would rather use in a higher-income year?
• Does the state follow federal bonus depreciation? Many do not, which means a separate state depreciation schedule.

The acquisition date and placed-in-service date both matter now, so capture them when the purchase is posted. In HelloBooks the bill or receipt sits on the transaction, so the date and invoice are there when you build Form 4562.