I see where bonus depreciation is back on again. Will you be purchasing any larger ticket items that need capitalized. If so what major business purchases are you doing?

I know I put in two roofs already and building a storage shed for the business now. What big ticket items are others eyeing up?.

I wonder if landscaping would qualify?

I'm doing a bunch of that this year.

I've never used bonus depreciation.

You can google it, but weed through old rules and find the new stuff.

Here's something on land:

Do land improvements qualify for bonus depreciation?

While land itself remains a non-depreciable asset, the improvements made to it, such as sidewalks, fences, and landscaping, qualify for depreciation. These land improvements are closely associated with the property and enhance its overall value, making them eligible for bonus depreciation.

Qualified Improvement Property and Bonus Depreciation

Qualified improvement property (QIP) is a valuable category of property that qualifies for bonus depreciation, offering significant tax savings for property owners. QIP includes any improvement made to the interior portion of a nonresidential real property building, such as roofs, HVAC systems, fire protection and alarm systems, and security systems. However, to qualify as QIP, the improvement must be placed in service after the building was first placed in service and must not include enlargements, elevators, escalators, or internal structural frameworks.

The Tax Cuts and Jobs Act (TCJA) expanded the definition of QIP, making it easier for taxpayers to claim bonus depreciation on these improvements. This expansion allows for immediate deductions, enhancing cash flow and reducing taxable income.

And QIP:

To claim bonus depreciation on QIP, taxpayers must ensure the property meets the following criteria:

The property must be classified as QIP.

The improvement must be placed in service after the building was initially placed in service.

The property must not include enlargements, elevators, escalators, or internal structural frameworks.

The taxpayer must elect to claim bonus depreciation on the property.

The storage shed thought above raised an idea I'll have to run past the CPA.

What if I build a large shop behind my own house? I do maintain an office here. The first year it is used to store items for the rental. It would be completely depreciated in that first year. Year two its completely depreciated and I switch it over to personal use so in essence I've legally written off the wood shop I was going to build.

I plan a detached garage as well at my place. I like the idea of being able to write it off as a business expense. It will be housing my commercial mower and excavator as well as other job oriented items.

Bonus depreciation - the ability to take extra depreciation in a specific year. So under the BBB, you can take 100% starting in January 2025.