Protecting Americans from Tax Hikes (PATH) Act
In prior years a bill was passed which provided for Section 179 to be permanent at the $500,000 level. Limitations apply for businesses exceeding a total of $2 million in purchases in qualifying equipment. Additionally, the Section 179 cap will be indexed for inflation in $10,000 increments in future years.
50% Bonus Depreciation: are expected to be extended through 2019. Businesses of all sizes may depreciate 50 percent of the cost of equipment acquired and put in service during 2017. Then bonus depreciatiion will phase down to 40% in 2018 and 30% in 2019. Pending legislation could change these provisions.
Qualifying equipment: Furniture, fixtures, machinery, computer devices, any equipment, tools, etc. used in business. Certain automobiles will also qualify.
Myra B. Carlisle, CPA