Deadline for Filing for the New Depreciation
Deduction is Today
Jacquelyn Himes, CPA
Focused on You. Dedicated to Your Success.
October 15, 2018

A new deduction created by the Tax Cuts and Jobs Act (TCJA) allows businesses to write off most depreciable business assets in the year they are placed in service. Because the deduction is retroactive and applies to qualifying property acquired and placed in service after September 27, 2017, it may affect 2017 returns. 

Individuals and calendar-year corporations who placed qualifying property in service during 2017, but haven’t claimed the new 100-percent depreciation deduction, must generally file the election with the IRS by today (October 15).

As reported in an article by Jeff Stimpson published in Accounting Today on October 8, 2018, the depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less, as well as certain other property. Machinery, equipment, computers, appliances, furniture, certain plants, and qualified film, television, and live theatrical productions generally qualify. 

Taxpayers who elect out of the 100-percent depreciation deduction, as well as the 50-percent deduction available under prior law, must do so by attaching a statement to a timely filed return. Taxpayers who have already filed their 2017 return but did not take the election have until today to file an amended return.

Feel free to call any member of our team at 610-828-1900 with questions. You can also contact Jackie Himes, CPA, director – tax services at Jacquelyn.Himes@MCC-CPAs.com or me at Marty.McCarthy@MCC-CPAs.com . We are always happy to help.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).