Bonus Depreciation

Discussion in 'Trucker Taxes and Truck Financing' started by 11akash, Dec 11, 2021.

  1. 11akash

    11akash Bobtail Member

    Dec 11, 2021
    How many people will be using the advantages of Bonus depreciation for their equipment this year and depreciating 100% upfront?

    What are your pros and cons ?
    Midwest Trucker and feldsforever Thank this.
  2. Lazer

    Lazer Heavy Load Member

    Jan 22, 2017
    The pro is may reduce that amount of tax you for this year by more.
    The con is your tax amount may be higher is the later years.
    But be careful if you would have not much tax owed this year, the bonus depreciation or ‘accelerated depreciation’ I believe it was called decades ago, would not be advantageous.
  3. Keep on Taxin'

    Keep on Taxin' Bobtail Member

    Feb 5, 2022
    Regular 3 years method of depreciation is better because it will lower your taxes for 3 years.
    If you deduct all in one year, next few years you might end up owning a lot of money to the IRS. Specially if the truck is brand new and you don't have any repairs....
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