Bottom Dollar Regs Finalized
Expect Greater IRS Focus on Alimony Deduction

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.


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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