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Personal Finance

What is bonus depreciation?

Quick Answer

Bonus depreciation lets businesses immediately deduct a percentage of qualifying asset cost in year one — 40% for 2025, 20% for 2026, then 0% in 2027 unless extended.

Bonus depreciation phase-down schedule from 2024 to 2027.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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