The Treasury Department and Internal Revenue Service released Monday the last set of final regulations implementing the 100% additional first-year bonus depreciation deduction, which allows businesses to write off the cost of most depreciable business assets in the year they are placed in service.
The 100% additional first-year depreciation deduction was created by the 2017 tax overhaul and 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 IRS explained.
The deduction applies to qualifying property (including used property) acquired and placed in service after Sept. 27, 2017.
The final regulations provide clarifying guidance on the requirements that must be met for property to qualify for the deduction, including used property. Also provided are rules for consolidated groups and rules for components acquired or self-constructed after Sept. 27, 2017, for larger self-constructed property on which production began before Sept. 28, 2017.