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William Thompson
  • Accountant
  • Williamstown, NJ
165
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286
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Everyone’s Talking About 100% Bonus Depreciation.

William Thompson
  • Accountant
  • Williamstown, NJ
Posted

Everyone’s Talking About 100% Bonus Depreciation. Almost Nobody’s Asking When 40% Might Be Smarter.

Lately I’ve been hearing the same thing from investors:

“If 100% bonus depreciation is back, why would I take anything less?”

Fair question.

But this is exactly where I think some investors let the tax tail wag the dog.

Yes, a big write-off sounds great. But the better question is not just, “How much can I deduct?” Sometimes the better question is, “What actually makes sense based on my income, my deal, and my long-term plan?”

Because bigger is not always better.

Sometimes taking the full deduction now is the right move. Sometimes it makes more sense to be more intentional, especially if you’re thinking about future income, passive loss limitations, or how this deal fits into the bigger picture.

That’s real tax strategy.

Curious where others land on this.

Are more investors chasing the biggest write-off possible right now, or actually thinking through whether a smaller first-year deduction could be the smarter play?

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