2024 Bonus Depreciation Limit

2024 Bonus Depreciation Limit. For 2023, businesses can take advantage of 80% bonus depreciation. Section 179 deductions are also limited to annual taxable business income, meaning that a business cannot deduct more money than it made.

In 2024, the bonus depreciation rate will drop to 60%, falling by 20% per year thereafter. Bonus depreciation is an accelerated form of depreciation — it allows you to deduct a fixed percentage (80% for 2023) of an asset’s cost upfront instead of spreading.