Tax Reform: First-year bonus depreciation of 100%

The Tax Cuts and Jobs Act (TCJA) has brought on major tax law change that impacts small businesses. The TCJA enhanced some tax breaks, repealed others and modified several deductions that are likely to affect a majority of business owners. Here’s one change.

First-year bonus depreciation of 100%

The TCJA allows first-year bonus depreciation of 100% of the value of assets purchased (both new and used qualifying property) and placed in service within the next five years. This deduction will be reduced starting 2023.

First-year depreciation deduction

Depreciation reminder: These tax law updates only change the timing of your expense, not the overall deduction.

If you have any questions, visit with one of our Tax experts.

TAX REFORM

Published: 9-13-18