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? Each tax year stands on it's own. And election is made on an asset per asset basis as they are placed into service.
Is bonus depreciation (based on current tax rate) applied in addition to the 179 deduction (100% of the purchase price)? One or the other is taken ... you cannot take all options. The bonus depreciation is taken for the full cost on ALL assets in the same class. The 179 deduction can be taken on each asset separately.
So you could take the bonus depreciation on all assets that are 5 year properties and then choose a 179 deduction on a 7 year property.
This section of the tax law is the only place you can legally play with your bottom line ... learning to play the game and make the correct choice for you not only this year but going forward is a good reason to talk to a local tax pro and get educated. A DIY program will not give you the tax planning advice you need to make an educated decision.
