2017 Tax Act Makes Significant Changes to Depreciation Provisions

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The 2017 Tax Act makes substantial changes to the US federal income tax rules for depreciation. One of the most substantial changes allows taxpayers to expense 100 percent of the cost of certain qualified property acquired after September 27, 2017, and placed in service through December 31, 2022. 

Previously, taxpayers generally could claim only 50-percent bonus depreciation for qualified property placed in service through the end of 2017, with phase-downs to 40 percent and 30 percent for qualified property placed in service in 2018 and 2019, respectively. 

A detailed discussion of the shift to 100-percent bonus depreciation, as well as insight on other depreciation provisions of the Act that law firms should consider when acquiring tangible depreciable property -- including changes to the definition of qualified property, recovery periods for real property, available elections, repeal of original-use requirement, and new limits under Section 179.

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Karen LoDico

Tax Partner, PwC US

Gary M. Pogharian

Partner, PwC US

Carole Symonds

Partner, Law Firm Services Tax Leader, PwC US

Gregg Sincoff

Tax Managing Director, PwC US

Nancy Regan

Tax Director, PwC US

Ran Wei

Director, PwC US

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