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Yes. Special "Bonus" Depreciation is not subject to recapture, which can occur with Section 179.
You may have to recapture the section 179 deduction if, in any year during the property's recovery period, the percentage of business use drops to 50% or less. In the year the business use drops to 50% or less, you include the recapture amount as ordinary income. You also increase the basis of the property by the recapture amount.
Also, if you have taken Section 179 Deduction for an asset, and then dispose of that asset before it reaches the end of its useful life, you may be subject to Depreciation Recapture. This would increase a taxable gain on the asset sale.
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March 5, 2024
1:04 PM
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