“Section 179 or Bonus? The Answer Isn’t
Obvious Anymore After OBBBA”
To get my complete article
with all the details…
The rules just changed—and what used to be an easy answer now deserves a second look.
Here’s what stood out to me:
- 100% bonus depreciation is back. That alone would seem to settle the debate… but it doesn’t.
- Section 179 got a major expansion too—higher limits, more flexibility, and still very much in play.
- Real Tax Tip: Bonus depreciation can create a net operating loss—but that loss won’t reduce self-employment tax in future years. Section 179, on the other hand, may give you that benefit through carryovers. The “best” choice depends on more than just this year’s write-off.
I’ve found that many default to bonus depreciation without thinking through the downstream effects—especially with the excess business loss rules now in the mix.
There’s a strategy here… but it’s not one-size-fits-all.