Question
Darryl owns and operates an independent news agency. On June 9, 2024, he purchased and placed into service a desk for his business in the amount of $900. He did not elect to claim a Section 179 deduction. He would like to take advantage of the special (bonus) depreciation allowance. What is his special (bonus) depreciation allowance for the desk?
Answers
GPT-4o mini
As of the tax year 2024, bonus depreciation allows businesses to immediately deduct a significant percentage of the cost of eligible property in the year it is placed in service. For property placed in service in 2024, the bonus depreciation rate is 100%.
In Darryl's case, since he purchased a desk for his news agency for $900 and placed it in service in June 2024, he can claim 100% of the cost as bonus depreciation.
**Bonus Depreciation Allowance:**
- Cost of Desk: $900
- Bonus Depreciation Rate: 100%
- Bonus Depreciation Allowance = $900 x 100% = $900
Thus, Darryl's special (bonus) depreciation allowance for the desk is **$900**.
In Darryl's case, since he purchased a desk for his news agency for $900 and placed it in service in June 2024, he can claim 100% of the cost as bonus depreciation.
**Bonus Depreciation Allowance:**
- Cost of Desk: $900
- Bonus Depreciation Rate: 100%
- Bonus Depreciation Allowance = $900 x 100% = $900
Thus, Darryl's special (bonus) depreciation allowance for the desk is **$900**.