2024 Bonus Depreciation Limit

2024 Bonus Depreciation Limit. For example, say a company. • 20% for property placed in service in 2026.

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. In 2024, the bonus depreciation rate will drop to 60%, falling by 20% per year thereafter until it is completely phased out in 2027 (assuming congress doesn’t take action to extend it).