In recognition of Small Business Week, here’s a quick tax tip to fuel your business:

Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the cost of an eligible asset instead of recovering the amount over the tax life of the asset.

The Tax Cuts and Jobs Act made it possible for small business owners to take advantage of the 100% bonus depreciation deduction. The IRS published proposed regulations (REG-104397-18) to increase the allowable first-year depreciation deduction for qualified property from 50% to 100% when placed in service after Sept. 27, 2017, and before Jan. 1, 2023.

Qualified property applies to business assets with a recovery period of 20 years or less such as:

  • Machinery & Equipment
  • Computers
  • Appliances & Furniture
  • Decorative Lighting
  • Cabinetry
  • Land Improvements

Interested in learning more about bonus depreciation? We have a monthly live webinar that discusses the current tax law and developments on this subject. View available dates to register for our upcoming sessions »