Bottom Dollar Regs Finalized
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Late Bonus Depreciation Elections

The Tax Cuts and Jobs Act (TCJA) increased the bonus depreciation deduction for qualified property, now including used property, from the previous 50% to 100% of the cost of the eligible property placed in service in a tax year that included Sept. 28, 2017. This provision begins phasing out after 2022.

The proposed regulations REG-104397-18 implementing this provision were not published until August 2018 after many taxpayers eligible for the additional depreciation had already filed their 2017 returns. Rev. Proc. 2019-33 clarifies that taxpayers can file amended returns to make a late election or file a Form 3115, Application for Change in Accounting Method, for the years the additional deduction was not claimed.

https://www.irs.gov/pub/irs-drop/rp-19-33.pdf

Comments

Mike Miller

Bonus Depreciation is a conservative, IRS-defined approach for reducing or eliminating your federal incomes taxes. Income taxes are a burden; don’t pay more than is required.

kreig mitchell

Too bad it didn't fix the qualified improvement property issue. Being able to take 100% bonus for QIP would help quite a few taxpayers reduce their tax liabilities--as intended by Congress in enacting the TJCA.

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