You should discuss your method of depreciation with your CPA. They will be able to advise you of the best strategy to meet your cash flow and tax needs. While the use of bonus depreciation will significantly reduce tax payments for the first year, they will generally increase in following years because the depreciation allowance will be limited to items not included in the bonus depreciation calculation. However, taking the bonus depreciation during the first year can be tremendously helpful for property owners who need to free up cash immediately for other investments or to meet operating cash flow needs.
Simple SEG Simple SEG » FAQs » Elements of my purchased property qualify for the 100% bonus depreciation deduction. Should I take the deduction now, or depreciate the value over the normal 5 to 7-year period?