The IRS has released a fact sheet that highlights new depreciation and expensing rules from the Tax Cuts and Jobs Act (TCJA).
Among other things, the maximum Section 179 deduction is increased from $500,000 to $1 million, and the phase-out threshold is increased from $2 million to $2.5 million for property placed in service in tax years beginning after 12/31/17. The definition of Section 179 property is also expanded.
The TCJA also increases the bonus depreciation percentage from 50% to 100% for qualified property acquired and placed in service after 9/27/17 and before 1/1/23, however property acquired before 9/28/17 and placed in service before 1/1/18 remains at 50%. The definition of property eligible for bonus depreciation was expanded (notably to include most used property), but certain property is no longer eligible, including property used in providing certain electric, water and gas utilities, or floor-plan financed motor vehicle sales or leasing.
The fact sheet can be accessed at www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act .