Depreciation, §179, Bonus, Amortization, Recapture

Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Business Tax Preparation. 9 min read, ~1,386 words.

2025 §179 limit \$1,250,000, dollar-for-dollar phaseout begins at \$3,130,000 of placed-in-service property; capped by business taxable income (carryover allowed). 2025 bonus depreciation 40%, applies to new OR used property with recovery period ≤20 years; automatic unless taxpayer elects out by class life. §179 cannot create a loss (income-limited, carries forward)...

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