The bonus depreciation deduction is another tax-saving option for business equipment purchases. Usually, the IRS allows companies to write off the cost of equipment over time with standard deprecation. For example, if you purchased $20,000 worth of equipment with a five-year depreciation life, you could write off 20% each year.nnBonus deprecation traditionally allowed companies to deduct up to 50% of the equipment's value in the first year and only applied to new equipment. The advantages of Section 179 over bonus deprecation were that you could deduct the entire cost, and it applied to new or used equipment.nnIn 2022 though, bonus depreciation allowed for a full tax deduction of 100% of the equipment cost, which applies to used equipment. You should know that the IRS plans to reduce the amount you deduct with bonus deprecation.