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New 100-percent depreciation deduction for businesses

October 10, 2018

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.