07/17/2026
๐ฆ๐ต๐ผ๐๐น๐ฑ ๐ ๐๐๐ฒ ๐ฆ๐ฒ๐ฐ๐๐ถ๐ผ๐ป ๐ญ๐ณ๐ต ๐ผ๐ฟ ๐๐ผ๐ป๐๐ ๐๐ฒ๐ฝ๐ฟ๐ฒ๐ฐ๐ถ๐ฎ๐๐ถ๐ผ๐ป ๐ณ๐ผ๐ฟ ๐บ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฒ๐พ๐๐ถ๐ฝ๐บ๐ฒ๐ป๐ ๐ฝ๐๐ฟ๐ฐ๐ต๐ฎ๐๐ฒ๐?
One strategy is to apply Section 179 first to erase your active business income down to zero. Then, apply 100% Bonus Depreciation to any remaining asset basis if you want to strategically generate a tax loss.
Here is why: you can't use Section 179 to create a tax loss because it is strictly limited to your net business taxable income. On the flip side, 100% Bonus Depreciation doesn't care about your net income.
For example, if your net income is $100,000 and you buy a $150,000 machine:
โข ๐๐ช๐ต๐ฉ ๐๐ฆ๐ค๐ต๐ช๐ฐ๐ฏ 179: You can only deduct $100,000 this year. The remaining $50,000 carries forward to next year.
โข ๐๐ช๐ต๐ฉ ๐๐ฐ๐ฏ๐ถ๐ด ๐๐ฆ๐ฑ๐ณ๐ฆ๐ค๐ช๐ข๐ต๐ช๐ฐ๐ฏ: The purchase pushes your business into a $50,000 Net Operating Loss, which can potentially offset other income.
This distinction gives you more control over your tax outcome. You can decide whether it makes more sense to wipe out your current business tax bill or intentionally create a loss to offset other income.
When you look at your financial goals for this year, is your priority clearing out your active business income, or are you looking for ways to offset other income sources?
