Alex Ferrara Tax Cuts & Jobs Act updates- Depreciation

Under prior depreciation law, taxpayers were allowed to take what is called “50% bonus depreciation” for NEW qualified property that was placed in service during the year. Under the new depreciation law, the bonus depreciation has increased from a 50% deduction to a 100% deduction for 2018. This was also retroactively placed in service for property acquired after September 27, 2017. And, there is no longer a requirement that the qualified property must be new. It can be USED property but just simply needs to be NEW to the taxpayer to receive the 100% bonus depreciation deduction. Section 179 depreciation - The Section 179 deduction has increased from $500,000 in 2017 to $1 million in 2018. Sec 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment during the year. The phase-out threshold for this deduction has increased from $2 million to $2.5 million in 2018. For examples of the depreciations mentioned above, please view the video. If you have any questions or need any additional tax planning, we here at Hall, Kistler would be happy to help. Please give us a call at 330-453-7633.