Bonus Depreciation, when would you not do it?

[Julia France]

I am new to the concept of bonus depreciation and trying to get a better understanding. In the first year of business (2023) should I use bonus depreciation for improvements, furniture, irrigation, landscaping? Can I expense AND depreciate these? My husband and I do all our own work so the value of these wouldn’t be as much as hiring out. Any good information or insight would be greatly appreciated. My short term rental is currently set up on a 39 year depreciation.

[Michael Plaks]

Quote from @Lien Vuong:

Yes you can expense and depreciate those in Y1. Why is your STR in a 39 depreciation schedule? Is it a commercial (5+ units) property? Otherwise it should be 27.5 years irrespective if its in an LLC form or not.

All STRs are depreciated under 39-yr schedule. It has nothing to do with commercial classification for realtor purposes.