2024 Bonus Depreciation Limit

2024 Bonus Depreciation Limit. For vehicles under 6,000 pounds in the tax year 2023, section 179 allows for a maximum deduction of $12,200 and bonus depreciation allows for a maximum of $8,000, for a total maximum deduction on listed property of $20,200. Businesses should adapt systems, consider section 179, and review state rules.

Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year, up to a certain limit. Bonus depreciation is a significant tax incentive that allows businesses to immediately deduct a substantial portion of the purchase price of eligible assets rather than capitalizing and depreciating them over time.