The Recipe for December Tax Panic (Bonus Depreciation Tax Strategy)

Bonus depreciation tax strategy can save both high-earning W-2s and business owners a LOT on taxes.

However, it can be done wrong.

The Wrong Way to Approach Bonus Depreciation Tax Strategy

• “Wait till December! Ask your CPA if they know of a good oil & gas (or real estate) deal!”
• Get information from your CPA.
• Don’t read it. Wait another two weeks.
• December 18: remember that you need to take care of this. Then forget.
• December 29: call your CPA—in a panic.
• Wire funds.
• Lose the investment—but at least you got the bonus depreciation tax deduction.

NO. NO. NO. NO.

The Right Way to Apply Bonus Depreciation Tax Strategy

NOW make the call to your tax strategist.  NOW. 

Then take time to run the paperwork through a risk assessment GPT in ChatGPT.  Preferably one created by your tax strategist that looks for red flags.  

Carefully weigh decision.  Decide on a contingency plan if this investment is not successful.  Discuss with your tax strategist, partner, self. 

THEN make the investment. 

You are welcome.

Why timing matters (and what to check)

Bonus depreciation rules are technical and change over time. Before you commit capital, verify property eligibility, placed-in-service timing, and documentation using official guidance like IRS Publication 946.

Helpful Reads

• Bonus Depreciation Class Rule: The SUV Write-Off Trap
• OBBBA 2025 Tax Planning: Why You Can’t Wait Until December
• Small Business Tax Deductions: Ultimate Guide for 2025