Bonus Depreciation of Business Assets

“Both new and used property now qualify for bonus depreciation, which is a little bit of a departure from some prior law,” Nowak said.

On this episode of Weaver: Beyond the Numbers, Host Tyler Kern talked with Rob Nowak, Partner in Tax Services at Weaver, about the bonus depreciation of business assets.

“Bonus depreciation is one of the incentives that’s been around in the tax code for about 20 years,” Nowak said. “It’s an enhanced expensing election that allows taxpayers to immediately write off the cost basis of qualifying assets placed in service during a year.”

So, what are qualifying assets? It’s a tangible property with MACRS class life of 20 years or less. It also includes some other property that is specialized to an industry, like particular water treatment property, software that is amortized over three years and certain types of plants.

“Both new and used property now qualify for bonus depreciation, which is a little bit of a departure from some prior law,” Nowak said. Under the 2017 Tax Cuts and Job Act, the law was changed to allow new assets but also used property. However, those would not qualify if a taxpayer previously used the property or a predecessor entity or related entity.

“There’s also a specific classification of property referred to as qualified improvement property,” Nowak said. “That’s certain improvements to commercial real estate.”

Listen to the full episode to hear all of Nowak’s insights on the bonus depreciation incentives.

Subscribe and listen to future episodes of Weaver: Beyond the Numbers on Apple Podcasts or Spotify.

Weaver’s professionals are known for helping clients address problems, achieve compliance and prevent fraud or loss. Visit for more thought leadership.

Follow us on social media for the latest updates in B2B!


Material Signs: Introduction to the World of Optics
January 21, 2022
Doctors Scott Carney, chief science and technology officer at Optica, Kate Medicus, CEO at Ruda-Cardinal, and Alexis Vogt, endowed chair and professor of optics at Monroe Community College, joined Host Tyler Read more
What Defines "Success" for Safety Personnel?
What Defines “Success” for Safety Personnel?
January 21, 2022
The Safety Justice League is back and refreshed after a much-needed, restful holiday season. Jason squared (Jason Maldonado and Jason Lucas) joined Host Abby Ferri to dive into what success looks like Read more
Driving Automation: Automating Workflows in the Parcel Post and Distribution Fulfillment Industries
January 21, 2022
  Think back to ten years ago when same-day delivery was a rarity; today, nobody bats an eye at its prevalence. Dan VanderAkker, Vice President of Kasa, joined Host Daniel Litwin to explain how workflow Read more