Bonus depreciation is a federal tax deduction that allows businesses to immediately deduct a large percentage of the purchase price of eligible assets.
Reporting Bonus Depreciation
Bonus depreciation is reported on your federal Form 4562 or passed through to you as a partner or shareholder on either Schedule KPI, Schedule KF, or Schedule KS.
Addition and Subtraction
These are the requirements for bonus depreciation addition and subtraction.
Use these examples to help you report bonus depreciation.