IRS fact sheet outlines tax reform depreciation changes

Tax Hot Topics newsletter The IRS released a fact sheet (FS-2018-9) summarizing changes to Section 179 expensing, bonus depreciation, luxury car depreciation limitations, treatment of some depreciable farm property and changes to recovery periods for real property, including changes which require the use of the alternative depreciation system.

The brief outline provides clarity on the increased limitation and threshold for Section 179 property, as well as an expanded definition of property that qualifies for the immediate expensing. It also highlights the changes made to the first-year bonus provisions in Section 168(k), including the application to used property. Until further guidance is issued, this fact sheet may provide taxpayers with an overview of changes made in tax reform to depreciation provisions, which allows for fixed asset planning throughout the year.

Sharon Kay
Washington National Tax Office
T +1 202 861 4140

John Suttora
Managing Director
Washington National Tax Office
T +1 202 521 1523

David Auclair
National Managing Principal
Washington National Tax Office
T +1 202 521 1515

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