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November 9, 2020

IRS provides election for taxpayers utilizing IRC Section 168(k) bonus depreciation

The IRS has issued guidance (Revenue Procedure 2020-50) for taxpayers that want to either apply Treas. Reg. Sections 1.168(k)-2 and 1.1502-68, or rely on the 2019 proposed regulations (REG-106808-19) under IRC Section 168(k), for certain (1) depreciable property acquired and placed in service, (2) plants planted or grafted, or (3) components of larger self-constructed property acquired or built, after September 27, 2017. Revenue Procedure 2020-50 applies to the taxpayer's tax years ending on or after September 28, 2017 and before its first tax year that begins on or after January 1, 2021. A Tax Alert is forthcoming.