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What to know about the 100-percent depreciation deduction for business taxpayers

Posted on December 7, 2018

The CPAs at Teipen Selanders Poynter & Ayres have been fielding inquiries about important tax reform legislation passed late last year that include changes that may affect your business.

Among them, a new regulation that allows businesses to write off 100% of most depreciable business assets in the year they place those assets in service.

What you need to know to legally utilize this business deduction:

  • What qualifies? Generally, business machinery, equipment, computers, appliances, furniture, and other property acquired and placed in service after Sept. 27, 2017.
These business assets must depreciable assets with a recovery period of 20 years or less.
  • Confused, missed the deadline, or have specific questions? You are definitely not alone. Talk to your CPA about what your business can do before the end of 2018.
  • gov is a good resource. Check out Form 4562 on the IRS.gov website for information, regulations and instructions on Depreciation and Amortization.

It’s always a good idea to talk to your business-savvy Teipen CPA about the tax specifics related to your particular business. Chances are good he or she has a recommendation or two that can save you time, and hopefully, money.

Let’s chat.