First-year bonus depreciation and Sec. 179 expensing: Beware of pitfalls

Description

Abstract: Many businesses are eligible for current tax write-offs for certain equipment purchases and building improvements. These write-offs can do wonders for cash flow, but whether to claim them isn’t always an easy decision. In some cases, there are advantages to choosing the regular depreciation rules. This article looks at a couple of examples to show why it’s critical to look at the big picture and develop a strategy that aligns with a company’s overall tax planning objectives.