Section 179 depreciation and Special Depreciation Allowance

[hntrust]

I am a concert pianist. I file a schedule C for my business. I purchased 2 pianos in 2025. The cost was $3,300 and $28,500. TurboTax is asking whether I want to take the section 179 depreciation or Special Depreciation Allowance but it is not explained very well as to which is better. Can anyone explain the pros and cons in layman's terms?

[ThomasM125]

The section 179 option allows you to deduct up to 100% of the cost of the assets, but is limited to your net income after expenses in the current year. Any deduction not allowed gets carried over to the next year and again will be limited to the net income that year and that situation repeats until you use up the full deduction.

With the bonus depreciation, depending on when you place the assets in service during 2025, you can also deduct up to 100% of the cost of the assets, but the full deduction applies to the current year, even if you have a net business loss. 

So, if you want a carryover of depreciation to future years and your net income is zeroed out by the special depreciation, you would be better off with the section 179 choice. You also have an option to select normal MACRs depreciation where you get the cost of the assets spread out more evenly over the useful life of the asset, with more be applied in the earlier years though.

You also have the option of choosing an amount less that the cost of the asset for section 179 treatment and then have the balance depreciated using special deprecation or normal (MACR's) depreciation.

[hntrust]

In my case, I do have net income that exceeds the cost of the pianos, so I can just take 100% for 2025 with section 179 and be done. Bonus depreciation wouldn't apply here. Am I correct on my reasoning? Thanks 

[AnnetteB6]

Yes, if you take the Section 179 option, then bonus depreciation does not apply.

@hntrust