Maximize the 100% Bonus Depreciation Window: A Step-by-Step Strategy Guide for High Earners Deploying Capital Into Mining or Compute
Introduction
Bonus depreciation is now permanent — but that doesn't mean timing doesn't matter.
In fact, for high-income earners looking to reduce taxes this year, the difference between deploying capital now vs. six months from now could easily be a six-figure swing in tax savings.
This guide explains the timing strategy, deployment checklist, and tax planning steps needed to fully capture the opportunity.
Why Timing Matters (Even Though Bonus Depreciation Is Permanent)
Permanent tax law doesn't mean permanent opportunity.
There are three reasons to move sooner rather than later:
1. Asset availability and pricing fluctuate
Mining and compute hardware prices rise when demand spikes.
2. Hosting capacity is finite
Great facilities fill up fast.
3. You can only deduct in the year you place assets in service
If you want tax relief this year, you need to act this year.
Even a 60-day delay can push a deployment into the next tax year — costing you a major deduction on your current return.
How Bonus Depreciation Interacts with Capital Deployment
To claim 100% bonus depreciation:
- You must acquire qualifying property
- It must be installed
- It must be operational
- It must be placed into service
For mining/data center infrastructure, this means:
- Racks installed
- Electrical connected
- Cooling active
- Equipment running
This is one reason hosting facilities are so valuable — they help investors place assets in service quickly.
Strategic Deployment Timeline (for High-W2 Earners)
Step 1: Select Equipment and Hosting Provider (Weeks 1–2)
Choose between:
- ASIC miners
- GPU servers
- Containers
- Power distribution equipment
Vet hosting providers (power quality, uptime, onboarding speed).
Step 2: Form the Business Entity (Week 1–3)
Depending on tax goals:
- Single-member LLC
- Multi-member LLC
- Active participation structure
- Manager-managed structure
- Pass-through taxation
Step 3: Acquire Equipment (Weeks 2–6)
Lead times vary.
Faster deployment = faster tax write-off.
Step 4: Place in Service (Week 3–10)
Install → test → turn on → document.
Step 5: Document Everything (Ongoing)
- Receipts
- Contracts
- Deployment photos
- Onboarding docs
- Power-up reports
This makes your tax position audit-ready.
Tax Planning Tips for High-Earners Specifically
Tip 1: Don't wait until December
You may run out of:
- Hardware
- Capacity
- Shipping time
- Installation resources
Deploying by year-end requires planning months in advance.
Tip 2: Align with your CPA early
You need to confirm whether investment losses can offset W2 income.
This depends on:
- Active vs passive rules
- Material participation
- Business purpose
- Entity structure
Tip 3: Consider over-depreciating deliberately
Some high earners buy more equipment specifically to reduce income in high-tax years.
Tip 4: Combine with retirement strategies
Bonus depreciation pairs extremely well with:
- Mega backdoor Roth
- Solo 401k (if structured correctly)
- Defined benefit plan
- Passive real estate losses (in certain cases)
What a Successful Year-End Plan Looks Like
A high-income earner earning $750k might:
- Deploy $450k into compute or mining
- Deduct $450k through bonus depreciation
- Reduce tax liability by $140k–$170k
- Begin generating revenue through hosting immediately
This changes the entire after-tax picture.
The Bottom Line
Bonus depreciation is one of the most powerful levers in the tax code. With the new law making it permanent, high-income earners have a long-term runway — but early adopters get the best combination of:
- Lower costs
- Faster deployment
- Stronger ROI
- Immediate tax relief
If you're considering deploying capital into mining or compute infrastructure — or want help structuring it properly — reach out. A well-timed plan can dramatically change your tax outcome this year.