Which statement regarding Bonus Depreciation is false?

The assertion that Bonus Depreciation only applies to new equipment is false because Bonus Depreciation can actually be claimed on both new and used property as long as the property is considered qualified property under the tax code. This change significantly broadens the scope of what can be depreciated, allowing businesses to take advantage of the benefit even when they invest in previously owned equipment.

This flexibility is particularly beneficial as it incentivizes businesses to invest in a wider array of assets, rather than limiting them solely to brand-new purchases. Understanding this aspect of Bonus Depreciation is crucial for businesses looking to maximize their tax benefits when acquiring assets.