BONUS DEPRECIATION UPDATES – Important Tax Changes
Recent changes to tax legislation have been enacted, and they may present an opportunity for your business. The new provisions are designed to enhance business investment through a tax-related advantage.
A key part of this legislation is the reinstatement of 100% bonus depreciation for most tangible personal property acquired after January 19, 2025. This provision may allow you to fully deduct the cost of new equipment in the year it’s placed in service. We encourage you to speak with your tax professional to understand how these changes may impact your business and explore how you can use them to your advantage.
Key Takeaways for Our Customers
It is important to note that under Section 179, businesses can now immediately deduct up to $2.5 million in qualifying asset purchases during the tax year the assets are placed into service. This is a significant increase from the previous limit of $1.25 million and is a direct result of recent tax legislation.
DISCLAIMER: *Please note that Mustang Cat is an equipment provider, not a tax or legal advisor, and is not responsible for any tax or legal advice. You should consult with your own tax and legal professional for guidance. Our team is ready to answer any questions you may have about new equipment.
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