Bonus Depreciation 2024. Bonus depreciation is an accelerated form of depreciation — it allows you to deduct a fixed percentage (80% for 2023) of an asset’s cost upfront instead of spreading the deduction out over its useful life. Dividing this by the property’s useful life (27.5 years) would result in an annual depreciation expense of $14,545, which can be deducted from your taxable income.

 — bonus depreciation changes the way that depreciation works. Bonus depreciation is an accelerated form of depreciation — it allows you to deduct a fixed percentage (80% for 2023) of an asset’s cost upfront instead of spreading the deduction out over its useful life.