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Bonus Depreciation Decision

Car purchased for $$65,000$

Placed in service on March $8,2023$

Eligible for $100\%$ Bonus Depreciation

$5-$year MACRS depreciation

Analyze the following:

Depreciation deduction for Year $1$ if Bonus Depreciation is taken.

Depreciation deduction for Year $1$ if Bonus Depreciation is NOT taken.

Discuss the factors Jackie shoul

Comparing Depreciation Methods over Time

Car purchased for $$42,000$

Placed in service on August $30,2023$

Section $179$ Expense elected: $$6,000$

Eligible for $100\%$ Bonus Depreciation

Calculate the depreciation deductions for Year $1$ AND Year $2$ under the following scenarios:

Scenario A: Bonus Depreciation taken

Scenario B: Bonus Depreciation NOT taken, regular MACRS depreciation used