CHAPTER 42Claiming Depreciation Deductions

There are several methods of claiming expense deductions for your purchases in 2022 of equipment, fixtures, autos, and trucks used in your business:

  • First‐year expensing (Section 179 deduction), which allows a deduction of up to $1,080,000 (42.3).
  • Bonus depreciation, which is another first‐year deduction at 100% of cost for eligible property (42.18).
  • Regular depreciation, which allows a prorated deduction over a period of years. Most business equipment is depreciable under MACRS (modified accelerated cost recovery system) over a six‐year period. MACRS applies to new and used property.

The objective of MACRS is to provide ...

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