IRS Issues Proposed Bonus Depreciation Guidelines
As part of the Tax Cuts and Jobs Act's amendments to the Internal Revenue Code, the IRS has issued a guidance proposal regarding the extension and modification of 100 percent bonus depreciation for both qualifying new and used property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2027. Partner John Hoover and other National Business Aviation Association (NBAA) officials said the action follows the organization’s quest for clarity on the topic.
Mr. Hoover, vice chair of NBAA’s Tax Committee, said that the proposed regulations are taxpayer-favorable, "so long as the taxpayer never owned the property or had the right to depreciate it in the past." If this is the case, the property can potentially qualify for bonus depreciation.