Treasury, IRS announce proposed changes to depreciation deduction
August 14, 2018
— The U.S. Department of the Treasury and Internal Revenue Service announced Aug. 3 proposed regulations on increasing and expanding the first-year depreciation deduction for qualified property.
According to the agencies, the benefit expands opportunities for small and midsized businesses — including dental practices — to "expense equipment purchases and make capital investments in their companies," according to a Treasury Department news release
Following its passage in 2017, the Tax Cuts and Jobs Act increased the first-year depreciation deduction from 50 to 100 percent for qualified properties acquired.
The deduction applies retroactively to qualified property acquired and placed in service after Sept. 27, 2017. The first-year allowance is 100 percent and is then decreased by 20 percent annually for qualified property placed in service after Dec. 31, 2022. The proposed change also extends the "placed-in-service date" from Jan. 1, 2021, to Jan. 1, 2027.
Read the proposed rule here