Jun 21 Bonus Depreciation Phase Out Begins in 2018
Bonus depreciation is a valuable tax-saving tool for businesses, as it provides the ability to claim accelerated first-year depreciation deductions for qualifying assets.
With the Protecting Americans from Tax Hikes (PATH) Act of 2015, bonus depreciation was extended for property purchased and placed in service before 2020. This was an incentive to businesses for purchasing new equipment, allowing for the bonus depreciation amount to be at 50% in 2015, 2016, and 2017. After December 31, 2017, the phase out will begin.
- Now in 2017: New equipment purchased and placed in service is eligible for bonus depreciation equaling 50% of the cost.
- In 2018: Assets placed in service will be eligible for bonus depreciation equaling 40% of the cost.
- In 2019: Assets placed in service will be eligible for bonus depreciation equaling 30% of the cost.
- After 2019: Bonus depreciation will no longer be available.
If you anticipate needing new equipment or updating your technology, buy now before the phase out begins after December 31, 2017. For more information, please contact Jennifer Moroz at [email protected] or (973) 472-6250.