The Week of May 5, 2019 is Small Business Week!
A change in the tax law allows businesses to immediately expense more of the cost of certain business property. Many businesses can now write off most depreciable assets in the year they’re placed into service.
The new law:
- Increased the maximum depreciation deduction to $1 million.
- Increased the phase-out threshold to $2.5 million.
- Expanded the definition of section 179 property, which allows a taxpayer to elect to include some improvements made to nonresidential real property
These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017. IRS Fact Sheet 2018-9 has details.