This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.


Special depreciation: 3 choices present new options Logo aicpa

  Alistair M. Nevius, J.D. |   Free |   AICPA |   01 Sep 2016 |   Journal of Accountancy

Recent changes made by the IRS and Congress have greatly expanded taxpayers' ability to currently deduct the costs of property purchased for business use, instead of having to depreciate those costs over many years. Three provisions allow taxpayers to accelerate deductions for the costs of capital assets and other property and avoid depreciation: bonus depreciation, expanded Sec. 179 expensing, and the de minimis exception to the tangible property, or "repair," regulations. Taxpayers can use all three provisions in the same year (although not on the same costs), and taxpayers and their advisers should understand the new rules to take full advantage of them. This article reviews the provisions.

Topics covered:
  • Tax: Technical: Tax accounting: Methods, Intermediate
  • Tax: Technical: Tax accounting: Period selection, Intermediate