Late Bonus Depreciation Elections
11/14/2019
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.
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.
Posted by: kreig mitchell | 11/16/2019 at 07:33 PM