Section 179 and bonus depreciation are powerful tools for accelerating deductions. But NJ doesn’t fully conform to the federal rules.
NJ Section 179 Differences
NJ allows a Section 179 deduction capped at $35,000 (2025). Any federal Section 179 above NJ’s cap must be depreciated over the asset’s useful life for NJ purposes.
NJ and Bonus Depreciation
NJ does not conform to federal bonus depreciation. Assets must be depreciated over normal useful lives for NJ purposes, creating an NJ addback in the year you claim bonus depreciation federally.
Planning Implications
NJ business owners need to track depreciation schedules for both federal and state purposes. This is one more reason clean bookkeeping and proper fixed asset tracking are essential.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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