Experienced Small Business Accountant - Business
taxpayers can generally depreciate tangible property except land, including
buildings, machinery, vehicles, furniture and equipment.
Changes to depreciation
and how they will affect businesses may include:
·
Businesses can immediately expense more under the new law;
taxpayers may elect to expense the cost of any property and deduct it in the
year the property is placed in service.
·
Maximum deduction increased from $500,000 to $1 million.
·
The phase-out threshold increased from $2 million to $2.5
million.
·
The new law allows taxpayers to elect to include improvements
made to nonresidential property. The improvements must have been made after the
date the property was first placed in service.
These improvements
include:
·
Any improvement to a building’s interior
·
Roofs
·
Heating and air conditioning systems
·
Fire protection systems
·
Alarm and security systems
Improvements that do not
qualify:
·
Enlargement of the building
·
Service to elevators or escalators
·
Internal structural framework of the building
These changes apply to
property placed in service in taxable years beginning after December 31, 2017.
If
you would like to discuss how these changes affect your particular situation,
and any planning moves you should consider in light of them, please give me a
call.
Amare
Berhie, Senior Accountant
(651)
300-4777
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