Can I write off 100% of business equipment I bought in 2025 right away?

Yes, for equipment acquired after January 19, 2025, the OBBBA restored 100% bonus depreciation, allowing businesses to immediately deduct the full cost of qualifying business assets in the year they are placed in service.

This is a significant reversal: bonus depreciation had been phasing down under the old law (80% in 2023, 60% in 2024, 40% in 2025 before OBBBA). The OBBBA made 100% bonus depreciation permanent.

What qualifies:

• Machinery, equipment, computers, vehicles used for business
• Furniture and fixtures used in your business
• Qualified improvement property (interior improvements to non-residential buildings)
• Software (certain types)
• Property with a depreciation life of 20 years or less

What does NOT qualify:

• Real property (land and most buildings themselves)
• Assets acquired before January 19, 2025 under a binding written contract
• Property used 50% or less for business

Bonus depreciation vs. Section 179:

Both let you deduct the full cost upfront. Key differences:

• Section 179 is capped at $1,220,000 for 2025 (phases out for purchases over $3,050,000)
• Section 179 is elective; bonus depreciation applies automatically to all assets in a class (you must opt out if you do not want it)
• Section 179 cannot create a net operating loss; bonus depreciation can

Important: 100% bonus depreciation reduces your taxable income immediately but creates a timing difference. In future years, you will have no depreciation deductions on those assets. Model the impact on your tax bracket across multiple years before deciding.