80% or 100% Bonus Depreciation - To Be or Not to Be

Quoting Shakespeare does not happen often in this blog, but it may be applicable here.

Photo by Chad Stembridge on Unsplash

The Tax Act passed by the House has a provision to make bonus depreciation 100% retroactive to January 1, 2023, and continue it through December 31, 2025. However, we know many farmers will file their tax return by March 1 (commonly known as the farmer’s due date, even though the due date remains April 15) and use 80% bonus depreciation since the Tax Act will likely not be law by then.

What happens if a farmer files by March 1 and claims 80% bonus depreciation and then the law changes it to 100% bonus depreciation. We had a reader reach out to us with this question as follows: