13 Section 179 vs. Bonus Depreciation: Which Tax Strategy Delivers Bigger Write-Offs

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When it comes to accelerating deductions and reducing taxable income, few tax strategies are as powerful—or as misunderstood—as Section 179 and Bonus Depreciation. Business owners and real estate investors often hear these terms used interchangeably, but choosing the wrong one can limit deductions, create future tax problems, or leave significant money on the table.
In this episode, we break down how Section 179 and Bonus Depreciation actually work, where they differ, and how to determine which strategy delivers the biggest and smartest write-offs for your situation.

What You’ll Learn in This Episode


The fundamental differences between Section 179 and Bonus Depreciation


Which assets qualify for each deduction and which do not


How income limitations impact Section 179 deductions


Why Bonus Depreciation can create losses—even without taxable income


How each strategy affects future depreciation and recapture


Common mistakes business owners make when electing deductions


When combining both strategies produces optimal tax results



Section 179: Powerful, but Not Unlimited
Section 179 allows businesses to expense the full cost of qualifying assets in the year they are placed in service—but only up to taxable income limits. We discuss:


Eligibility requirements


Income caps and phase-outs


Why Section 179 works best for profitable operating businesses


Situations where Section 179 may backfire



Bonus Depreciation: Flexible and Aggressive
Bonus Depreciation offers broader flexibility, allowing businesses and real estate investors to create or increase losses—even in low-income years. In this episode, we explain:


Why Bonus Depreciation is often preferred in real estate and cost segregation


How it differs from Section 179 in loss creation


The long-term impact on depreciation schedules


Why timing matters as bonus depreciation phases down



Which Strategy Delivers Bigger Write-Offs?
The answer depends on:


Your income level


The type of asset purchased


Whether you want deductions now or smoother deductions later


Your long-term tax and exit strategy


We walk through real-world scenarios to illustrate when Section 179 wins, when Bonus Depreciation wins, and when the smartest move is using both strategically.

Who This Episode Is For


Business owners purchasing equipment, vehicles, or technology


Real estate investors considering cost segregation


High-income earners seeking accelerated deductions


Tax-savvy professionals who want to avoid audit-triggering mistakes



Key Takeaway
Section 179 and Bonus Depreciation are not competing tools—they are strategic options. The investors and business owners who benefit most are those who understand when to accelerate deductions, when to preserve future write-offs, and how to align depreciation with long-term tax planning.

Listen Now
If you want to maximize deductions without creating unintended tax consequences, this episode provides the clarity needed to make informed, strategic decisions.
 


Disclaimer: The information shared in this podcast is for general educational purposes only and does not constitute legal, tax, financial, or accounting advice. Nothing discussed should be interpreted as specific guidance for your personal situation. Laws and regulations change, and the applicability of the concepts discussed may vary based on your individual circumstances. Before making any decisions, you should consult with a qualified professional who can provide advice tailored to your needs.
If you require personalized assistance, you may contact me at TaxAndMoneyMastery.com.
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