IRS likely to issue guidance on 2014 extension of bonus depreciation

Tax Hot TopicsTax Hot Topics
The Tax Increase Prevention Act (H.R. 5771) extended 50% bonus depreciation for property placed in service in 2014 (2015 for certain long-lived and transportation property) and extends the ability to claim unused alternative minimum tax credits in lieu of bonus depreciation. Some taxpayers, like fiscal year filers or short tax year filers, may have already filed tax returns including property placed in service in 2014.  

In prior years, the IRS and the Department of  the Treasury have published guidance regarding the time and manner for making certain elections under the bonus depreciation rules for tax returns that have already been filed. Based on informal discussions with the IRS, we anticipate the IRS will provide guidance on this latest 2014 extension of bonus depreciation as applied to short tax year and fiscal year filers.

Sharon Kay
+1 202 861 4140

Tax professional standards statement
This document supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document, we encourage you to contact us or an independent tax adviser to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this document is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.