Can bonus depreciation create a loss?

Yes, bonus depreciation can create a loss. If the deduction from bonus depreciation creates a net operating loss, you can use that amount to offset the previous year's income or you can choose to carry any unused loss forward to deduct against any future income.

Bonus depreciation can help to lower a business's taxes because it allows a taxpayer to deduce 100% of depreciation upfront from their Federal tax return. This means that a company can pay substantially fewer taxes. A loss helps to prolong those benefits, by allowing you to deduct from future income as well.