I see and that makes sense, however
Here are the rules and limitations for 2022:
- The asset must be tangible personal property, including software (not real estate).
- It must be used in a trade or business (property used in a rental activity is generally not eligible).
- You must take the deduction in the year you start using the asset.
- The decision to use Section 179 must be made in the year the asset is put to use for business.
- The deduction cannot be more than your earned income (net business income and wages) for the year.
If it is just a rental, not a business, the bonus depreciation and 179 deduction can't be applied.
- 80,372 depreciation recapture tax (is this taxable at 25%?) $20,093
It's Ordinary Income, so taxed at whatever your tax rate is.
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