Bonus Depreciation

Definition

Additional first-year depreciation allowing 80% (2024) immediate deduction on qualifying property, phasing down 20% annually.

Related Terms

Depreciation

Decrease in vehicle value over time, a major hidden cost of gig driving.

Section 179 Deduction

Tax provision allowing immediate deduction of the full cost of qualifying equipment in the year purchased rather than depreciating over time.

FAQs

What is bonus depreciation for vehicles?

Allows large first-year deduction on vehicles over 6,000 lbs GVWR used for business.

Similar Terms

1099 Form

IRS tax form reporting income paid to non-employees, commonly 1099-NEC for contractor pay or 1099-K for payment platforms.

1099-K

Tax form reporting payments from payment networks like PayPal or gig platforms when exceeding annual thresholds.

1099-NEC

Tax form for non-employee compensation of $600 or more, replacing Box 7 of the old 1099-MISC for contractor payments.

Self-Employment Tax

Social Security and Medicare taxes for self-employed individuals, totaling 15.3% on net earnings.

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Last updated: January 18, 2026

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