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What is the difference between Section 179 and bonus depreciation?
Bookkeeping & accounting basics
Section 179 is an election with an annual dollar cap, limited by taxable income, so it cannot create a loss. Bonus depreciation has no income limit and applies automatically unless you elect out.
The practical difference shows in a loss-making year, when Section 179 is unavailable but bonus still applies.
We handle this for founders running US companies.
