What is an additional deduction offered as Bonus Depreciation?

Bonus depreciation allows businesses to immediately deduct a significant percentage of the cost of eligible assets in the year they are placed in service, rather than spreading the deduction over the asset's useful life. Under the Tax Cuts and Jobs Act (TCJA), businesses can take 100% bonus depreciation for qualified property acquired and placed in service between September 27, 2017, and December 31, 2022. While the question presents percentages other than the maximum for that period, the correct choice highlights a common scenario where bonus depreciation can be applied, as it refers to the unadjusted basis, which is the original cost of the asset without any adjustments for depreciation.

The percentage of 30% or 50% noted in the correct choice reflects previous years' applicable bonus depreciation rates before the TCJA and underscores the fluctuation in bonus depreciation percentages based on different tax legislation periods. This choice emphasizes the importance of understanding past and current tax law regarding asset depreciation allowances.

The remaining options do not accurately represent the structure of bonus depreciation as recognized by IRS guidelines, which typically do not provide the stated percentages in the context of bonus depreciation.