Treasury Department and IRS release final and proposed regs on the new 100% additional first-year depreciation deduction. . .
On September 13, the Treasury Department and the Internal Revenue Service today released final regulations and additional proposed regulations under § 168(k) of the Internal Revenue Code on the new 100% additional first-year depreciation deduction that allows businesses to write off most depreciable business assets in the year that the business places such assets into service.
The IRS has submitted these final and proposed regulations to the Federal Register which are subject to change due to minor editorial changes. Once published in the Federal Register, they will be in their official form. The final regulations implement many provisions of the Tax Cuts and Jobs Act (TCJA) and are the end product of proposed regulations issued by the IRS in August, 2018. Read more about bonus depreciation and the Tax Cuts and Jobs Act (TCJA) in future blogs.
The proposed regulations promulgated by the Treasury Department and IRS cover (i) certain property not eligible for the additional first-year depreciation deduction, (ii) a de minimis use rule for determining whether a taxpayer previously used property; (iii) components acquired after September 27, 2017, of larger property for which construction began before September 28, 2017; and (iv) other aspects not dealt with in the previous August 2018 proposed regulations.
The proposed regulations also withdraw and reformulate rules regarding the application of the used property acquisition requirements (i) to consolidated groups, and (ii) to a series of related transactions.
For details on claiming the deduction or electing out of claiming it, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com for a FREE consultation.
The IRS extends deadlines for some taxpayers affected by Hurricane Florence. . .
The IRS extended deadlines that apply to the filing of returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Florence. The federally declared disaster areas include hurricane victims in certain counties in North Carolina and South Carolina. The extension applies to deadlines – either an original or extended due date – that occurred on or after September 7, 2018, and before January 31, 2019.
The IRS often updates its information on disaster relief efforts. For the latest news, see the IRS disaster relief page frequently.
The IRS is working on implementing the Tax Cuts and Jobs Act.
This new law includes major tax legislation that will affect both individuals and businesses. Stay tuned to our blog page for more on this important legislation.
If you live in the New York or the Tri-State area and have any questions about any tax-related issues, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.
