What is it? from real estate to superyachts, how the wealthy use it, how it works
When the ultra-rich make major purchases—like private jets, yachts, or even large-scale real estate—they often end up paying less in taxes. One of the main tools they use is called bonus depreciation.
Sounds technical. But once you understand it, you’ll realize how powerful it is—and why it’s time more Black entrepreneurs started using it too.
Bonus depreciation allows you to deduct a large percentage (sometimes 100%) of a business-related asset’s cost upfront—in the same year you buy it.
Instead of spreading out the tax deduction over multiple years, the IRS lets you write off the whole thing right away. So, if you buy something for your business—like equipment, trucks, or even renovations—you could immediately reduce your taxable income by the full amount.
It’s a massive tax advantage.
This isn’t speculation. It’s documented.
According to ProPublica, ultra-wealthy business owners have used bonus depreciation to buy jets and luxury yachts—and then deducted them as "business expenses."
Sounds insane, but under IRS rules, it’s perfectly legal if the asset is used primarily for business purposes.
That same rule can apply to:
And U.S. Bank breaks it down even further: bonus depreciation stacks on top of Section 179, giving businesses more flexibility to write off high-ticket purchases.
Whether you’re:
Bonus depreciation could save you thousands on your taxes—money you can reinvest to grow.
But to access that? We need to talk more about Black business funding, tax strategies, and wealth tools before tax season hits.
It’s time we bring these strategies into our communities—not just for survival, but for scale, ownership, and real wealth.
Bonus depreciation is just one tool. But it’s one we can’t afford to overlook.
