Thanks @Critter-3 for your reply, I'm learning as I go so thank you for your patience! I looked into the 3 options you mentioned:
Mid Quarter depreciation - if the total cost basis of business equipment placed in service during the last three months of the tax year exceed 40% of the total basis of all the property placed in service during the year.
179 deduction - allows businesses to take an immediate deduction for business expenses related to depreciable assets such as equipment, vehicles, and software.
Bonus depreciation - based on tax rate ( Equipment covered by the Section 179 deduction might also qualify for bonus depreciation, which further reduces the business owner's tax bill.)
I guess I'm still confused on:
- If you fall under the MQ rules (40%) can you can still elect to take the 179 deduction/bonus depreciation? or would I have to wait until Q1 of next year to do so?
- Is bonus depreciation (based on current tax rate) applied in addition to the 179 deduction (100% of the purchase price)?
