Planning to Purchase Equipment
Before Year End?
If so, the good news is that the Tax Cuts and Jobs Act of 2017 (TCJA) provides more opportunity than ever before to deduct (in 2018) the total cost of equipment and other tangible property acquired and placed in service before December 31, 2018. Some of those opportunities include:
- Increased amount of Section 179 available to taxpayers (up to $1 million)
- Bonus depreciation is temporarily increased from 50% to 100% of the acquisition cost
- Bonus depreciation is eligible to be taken on used assets (it was previously only available for new assets)
As with most good things, though, there are limitations with both Section 179 and bonus depreciation.