I bought a new laptop thinking I'd take the 100% bonus depreciation this year. It might be more advantageous to me to take it next year. I haven't even opened the package yet. Can I keep it and place it in service next year and take a 100% bonus depreciation then? Is it better to send it back and re-purchase? Thank you!!
Year end panic – deduction on new laptop
byu/FirstLeaf1 intax
Posted by FirstLeaf1
1 Comment
Depreciation depends on when the laptop is placed in service, not when it’s purchased, so if it’s unopened and unused, you can place it in service next year. However, 100% bonus depreciation is no longer available…..bonus has phased down, and next year’s rate is lower than this year’s. As a result, waiting does not give you a larger deduction. If timing is the concern, a better option may be to place it in service this year and elect out of bonus depreciation and depreciate it normally. Returning and repurchasing generally doesn’t change the tax result unless business use timing changes.