What's the difference between Section 179 and Bonus Depreciation?
It is worth understanding that the most important difference between Section 179 and Bonus Depreciation is that "both new and used equipment qualify for Section 179 Deduction, whereas Bonus Depreciation covers new equipment only."
Bonus Depreciation is useful to very large businesses spending more than $560,000 on new capital equipment in 2012. Furthermore, businesses with an net operating loss in 2012 qualify to carryforward the Bonus Depreciation to a future year.
It is worth noting that when applying these depreciation rules, Section 179 is generally taken first, followed by Bonus Depreciation, unless the business has no taxable profit in 2012.