Bonus Depreciation Trap: Acquisition Date vs. Service Date
- Viktoriya Barsukova, EA, MBA
- 6 minutes ago
- 1 min read
Bonus depreciation has been one of the most unpredictable tax provisions—constantly expiring, changing, and getting extended. The OB3 Act finally makes it permanent and restores 100% bonus depreciation.
But there’s a catch.
The biggest issue is the new requirement: the asset must be both acquired AND placed in service after January 19, 2025.
In the past, timing was simpler. For depreciation, the placed-in-service date was what mattered most. Now, that’s no longer enough.
Under the new rules, you must look at two dates:
• When the asset was acquired
• When it was placed in service
To qualify for 100% bonus depreciation, both must be after January 19, 2025.
If the asset was acquired before January 20, 2025, it falls under the old rules—even if you start using it later.
Example:
• Acquired: January 1, 2025
• Placed in service: February 2, 2026
→ Result: 20% bonus depreciation
Now compare:
• Acquired: February 1, 2025
• Placed in service: February 2, 2026
→ Result: 100% bonus depreciation
Same asset. Same use date. Different purchase date—completely different tax outcome.
Bottom line:
The acquisition date now matters just as much as the placed-in-service date. If you miss this, the deduction can be wrong.
Bonus Depreciation Trap: Acquisition Date vs. Service Date - Before filing, make sure both dates are reviewed carefully.