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.
Gary M. Pogharian
Partner, PwC US
Partner, Law Firm Services Tax Leader, PwC US
Tax Managing Director, PwC US
Tax Director, PwC US
Director, PwC US