Here are some facts about this deduction to help businesses better understand how to claim it:
- 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. These taxpayers have six months from the original filing deadline to file an amended return. For calendar-year corporations, this means
Oct. 15, 2018.
- The IRS issued proposed regulations with 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, taxpayers should refer to the proposed regulations or the instructions to Form 4562, Depreciation and Amortization.