Our New York tax office provides regular updates on tax reform legislation and how the changes affect businesses and self-employed taxes. A significant change related to the Tax Cuts and Jobs Act allows businesses to write off most depreciable business assets in the year they place them in service.
Key highlights of changes to business asset depreciation for self-employed individuals and businesses include:
- The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property.
- Machinery, equipment, computers, appliances and furniture generally qualify.
- The 100-percent depreciation deduction applies to qualifying property acquired and placed in service after Sept. 27, 2017.
- Taxpayers who elect out of the 100-percent depreciation deduction for a class of property must do so on a timely filed return. Those who have already timely filed their 2017 return and did not elect out can still do so.
- The IRS issued guidance on what property qualifies and rules for qualified film, television and live theatrical productions, and certain plants.
For details on claiming the 100-percent depreciation deduction or electing out of claiming it for New York City taxpayers, please contact our NYC CPA firm.