Bonus depreciation for items bought before business start date

[bimbayo]

Hi Experts,

I started a consulting business in  2023 (actually started the registration process in Dec '22 but my business license reads Feb 2023) and set up a home office for it.

With bonus depreciation I know that can depreciate qualifying assets. However, some of my office equipment was bought in 2022 while I was planning for the business. Is there a limit to when a qualifying asset must have been procured, or am I only allowed to depreciate assets bought after business regirtration?

Thank you.

bby

[RyanH5]

Hi bby,
When determining dates for depreciation of assets, the IRS  and tax code place emphasis on the placed in service date, rather than the purchase date. If you did not start your business until after January 1st, then, by definition, you could not have placed any assets in service before then either. All assets purchased before starting a business are placed in service on day 1 of the business.

I hope this helps.