🚨 Major Bonus Depreciation Changes in 2025 – What You Need to Know The Tax Relief and American Competitiveness Act of 2025 is now law, and its changes to bonus depreciation will impact nearly every business. Here’s the breakdown: Key Changes Starting January 1, 2025: ✅ Bonus Drops to 60% – Down from 80% in 2024, reducing immediate write-offs for equipment and machinery. ✅ Small Business Safe Harbor – Companies with <$2.5M in assets can still use 100% expensing under Section 179. ✅ Cloud Software Now Qualifies – Critical update for tech, SaaS, and digital services firms. Strategic Implications: 🔹 Cash Flow Planning – Larger taxable income for businesses with big 2025 capital expenditures. 🔹 Year-End Timing – Accelerating 2024 purchases may still lock in 80% bonus depreciation. 🔹 Section 179 Review – More businesses will need to compare Section 179 vs. bonus depreciation. 📌 Next Steps: If you’re planning major equipment purchases or tech upgrades, now’s the time to model the tax impact. This phase-down will reshape deductions for manufacturing, construction, and tech industries. Proactive planning can soften the blow—let’s make sure you’re positioned right. Questions? Drop them below! 👇 #CPA #TaxPro #Accounting #Finance #BusinessStrategy #Leadership #Entrepreneur #BonusDepreciation #IRS #Section179 #TaxReform
