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03 August 2018

IRS issues Section 168(k) full expensing regulations

On August 3, 2018, the IRS and US Treasury Department issued proposed regulations on Section 168(k), which allows taxpayers to fully expense items purchased and placed in service after September 27, 2017, and before January 1, 2023 (January 1, 2024, for certain qualified property with a longer production period). The proposed regulations include guidance on:

— The requirements for depreciable property to qualify for the additional first year depreciation deduction

— How to determine the additional first year depreciation deduction

— The amount of depreciation allowable for Section 168(k) property

A Tax Alert is forthcoming.

Document ID: 2018-9017

 

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