Tax reform legislation includes changes that affect a business’ bottom line. One of these changes allows businesses to write off most depreciable business assets in the year they place them in service.
Here are some facts about this deduction:
- The 100-percent depreciation deduction generally applies to depreciable business assets and certain other property.
- Machinery, equipment, computers, appliances and furniture generally qualify.
- The deduction is retroactive for qualifying property acquired and placed in service after Sept. 27, 2017.
- Taxpayers who elect out of the 100-percent depreciation deduction must do so on a timely filed return.
For more information see Form 4562 or visit IRS.gov.
(MNSEA addition: or as one of America’s Tax Experts, take a look at the House of Representatives copy of the Internal Revenue Code)