Bonus Depreciation

[mhs1826]

Can you take Bonus Depreciation on a piece of equipment (Table Saw) that was originally purchased by the taxpayer prior to forming a business and converted to business use in 2024?

I know that Sec 179 can't be used but I haven't found anything so far that categorially states Bonus Depreciation can be utilized. Thanks. 

[TaxGuyBill]

Yes, you can use Bonus.

[Terry53029]

Like Bill said you can use bonus Depreciation, but for 2024 it is only 60%. You could also elect for the de minimis safe harbor election as it allows you to expense items under $2,500 you would normally capitalize. If you take this election, you are forced to expense every item under $2,500 and are not allowed to depreciate them. 

[sjrcpa]

Also, remember that the basis for depreciation is he lower of cost or FMV on the date converted to business use.