Installed a new roof for rental - bonus deprec. or sect 179?

[taxesaretaxing123]

Is there a benefit to Section 179 vs bonus depreciation (assuming that bonus depreciation is retroactive to 100% for 2023)?  Is the recapture the same for both?

[ThomasM125 · Accepted solution]

Section 179 may allow you to write off 100% of the cost of qualifying property in the year put into service, whereas bonus depreciation is limited to 80% of the cost of the property in 2023. However, the current year section 179 deduction is limited to your net business or rental income for the year, with any unused deduction carried over to future years.  Bonus depreciation does not have that income limitation. You may want to try each deduction separately in TurboTax to see which one benefits you more. Either expensing method could result in recapture of depreciation if you disposed of the property before the normal numbers of years allowed for depreciation of the asset type.