Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Will 100% Bonus Depreciation Make a Comeback in 2025? #SmallBusinessTax

Name: Painting Business Owners: Will 100% Bonus Depreciation Make a Comeback in 2025? #SmallBusinessTax
Uploaded: 2025-02-12T14:15:03+00:00
Duration: 54 s
Channel: Daniel Honan
Description: In this short briefing, the speaker highlights the 100% bonus depreciation provision from the Tax Cuts and Jobs Act, explaining that it permits…

12 Feb 2025 · 1 min

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In this short briefing, the speaker highlights the 100% bonus depreciation provision from the Tax Cuts and Jobs Act, explaining that it permits small‑business owners—such as painting contractors—to immediately deduct the full cost of qualifying equipment (computers, vehicles, machinery, office gear) in the year of purchase, rather than spreading the deduction over several years. He notes that the provision has been phased down: 100% through 2022, reduced to 80% in 2023, 60% in 2024, and slated for 40% in 2025. However, he suggests that future policy changes could restore the 100% rate, making it a potential tax‑saving opportunity to watch.

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Return of 100% bonus depreciation. One of my favorite provisions of the Tax Cuts and Jobs Act. It allows for the immediate full write-offs for eligible equipment and property purchases. That means if you buy computers, vehicles, machinery, office equipment, you don't have to wait 5 or 7 years to fully deduct those costs. You can choose to use bonus depreciation and write the entire thing off in year 1. So a huge tax savings for mostly small businesses who are purchasing these types of things. We enjoyed 100% bonus depreciation for several years, but starting in 2023, we saw it reduced from 100% down to 80%. 2024, we're down to 60%. 2025, we're supposed to go to 40%, but we'll see, maybe we'll get back up to 100%.