Not if you are a Real Estate Investor who can claim 80% Bonus Depreciation

September 16th is finally here, and many business owners feel the familiar dread. It’s tax filing day, looming like a “bad moon rising” on the horizon.

For those who extended, the clock is done ticking, and the weight of paperwork, deductions, and balance sheets that felt overwhelming must be finalized today.

Just like that ominous moon in Creedence Clearwater Revival’s song, tax season brings its own storm of financial uncertainty. But there’s a silver lining hidden in this storm: bonus depreciation. Think of it as a flashlight cutting through the darkness. Here is a CCR Live Version from The Royal Albert Hall in 1970.

Introduced as part of the Tax Cuts and Jobs Act (TCJA), bonus depreciation allows businesses to deduct a significant percentage of the cost of eligible assets in the year they are placed into service. Instead of spreading out the deduction over the asset’s useful life, you can claim up to 80% of the expense right away in your 2023 extended return.

This provision can be a lifesaver, by reducing your taxable income and, in turn, the amount of tax you owe. It’s a welcome relief for business owners bracing for the impact of election season and the ups and downs it can bring. Bonus Depreciation offers a way to lighten the load and keep more cash flow available for future growth.

So, while tax day may feel like that bad moon rising, bonus depreciation offers a way to weather the storm, bringing a little brightness to an otherwise daunting day.

Cheers to a tax relief delivering a brighter moon!