What is a Written binding contract?

A written binding contract is an enforceable agreement to buy property that fixes the acquisition date for depreciation purposes. Under the One Big Beautiful Bill Act, an asset must be acquired after January 19, 2025, to claim permanent 100% bonus depreciation, and a contract signed before January 20, 2025, can place the asset under the old phase-down rules even if delivered later. To count as binding, the agreement must be enforceable under state law and limit damages on cancellation. Confirming the contract date is a key step in any year-end Depreciation and amortization plan.