This law change: Generally, applies to depreciable business assets with a recovery period of years or less and certain other property. Full bonus depreciation is phased down by percent each year for property placed in service after Dec. However, QIP acquired and placed in service between September and December qualifies for the 100-percent additional first year depreciation deduction if all other requirements for such deduction are met.
This extra depreciation allowance is only for new equipment. The new law also removes computer or peripheral equipment from the definition of listed property. See all full list on irs.
Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Property for which you elected not to claim any special depreciation allowance (discussed later). Property placed in service and disposed of in the same tax year. Property converted from business use to personal use in the same tax year acquired.
Legislation through the years has modified the bonus depreciation percentage (now 1) and property that is considered to be qualified. Bonus depreciation in Sec. New 1percent , first- year ‘ bonus ’ depreciation.