100 Percent Depreciation Deduction for 2017

Business taxpayers who placed qualifying property in service during 2017 but choose not to claim the new 100-percent depreciation deduction have a limited time to file the required election with the IRS. In general, individuals and calendar-year corporations must file the election with the IRS by October 15, 2018. The new 100-percent deduction allows businesses to write off most depreciable business assets in the year they are placed in service. This deduction was created by the TCJA. Because the deduction is retroactive and applies to qualifying property acquired and placed in service after September 27, 2017, it may affect many 2017 tax returns.
The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Taxpayers who elect out of the 100-percent depreciation deduction, as well as the 50-percent deduction available under prior law, must do so by attaching a statement to a timely-filed return. Those who have already timely filed their 2017 return and did not elect out but still wish to do so need to file an amended return. The deadline for filing the election is six months after the original deadline. For individuals or calendar-year corporations, this means October 15, 2018. Click here for details.