Business taxpayers who placed qualifying property in service during 2017 but choose not to claim the new 100-percent depreciation deduction, must file the required election with the IRS by Oct. 15, 2018.
The new 100-percent deduction allows businesses to write off most depreciable business assets in the year they are placed in service. This deduction was created by the Tax Cuts and Jobs Act (TCJA) the tax reform legislation enacted in December 2017.
Because the deduction is retroactive and applies to qualifying property acquired and placed in service after Sept. 27, 2017, it may affect many 2017 tax returns. See IRS Fact Sheet 2018-09 for more details.
The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances, furniture, certain plants and qualified film, television and live theatrical productions generally qualify. Further details can be found in proposed regulations, issued last month, as well as in Publication 946, How to Depreciate Property, and in Form 4562, Depreciation and Amortization, and its instructions.
Taxpayers who elect out of the 100-percent depreciation deduction, as well as the 50-percent deduction available under prior law, must do so by attaching a statement to a timely-filed return. For details, see the instructions for Part II of Form 4562.
Those who have already timely filed their 2017 return and did not elect out but still wish to do so need to file an amended return. The deadline for filing the election is six months after the original deadline. For individuals or calendar-year corporations, this means October 15, 2018.
For more information about this and other TCJA provisions, visit IRS.gov/taxreform.
About The Author
Cynthia Marcotte Stamer is a Martindale-Hubble “AV-Preeminent (Top 1%) rated practicing attorney and management consultant, health industry public policy advocate, widely published author and lecturer, recognized for her nearly 30 years’ of work with business and government clients and their leaders as a LexisNexis® Martindale-Hubbell® “LEGAL LEADER™ and “Top Rated Lawyer,” in Health Care Law and Labor and Employment Law; a D Magazine “Best Lawyers In Dallas” in the fields of “Health Care,” “Labor & Employment,” “Tax: Erisa & Employee Benefits” and “Business and Commercial Law,” a Fellow in the American Bar Foundation, the Texas Bar Foundation and the American College of Employee Benefit Counsel.
Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization, Ms. Stamer serves as outside general counsel and special counsel advice, representation and other legal and operations services on a real-time “on demand,” special project and ongoing basis tailored to the needs of the client. hroughout her career with health care providers, health plans, health care clearinghouses, their business associates, employers and other plan sponsors, banks, insurers and other financial institutions, and others on trade secret confidentiality, privacy, data security and other risk management and compliance including design, establishment, documentation, implementation, audit and enforcement of policies, procedures, systems and safeguards, drafting and negotiation of business associate, chain of custody, confidentiality, and other contracting; risk assessments, audits and other risk prevention and mitigation; investigation, reporting, mitigation and resolution of known or suspected breaches, violations or other incidents; and defending investigations or other actions by plaintiffs, OCR, FTC, state attorneys’ general and other federal or state agencies, other business partners, patients and others; reporting known or suspected violations; commenting or obtaining other clarification of guidance and other regulatory affairs, training and enforcement, and a host of other related concerns.
Best recognized for her work on labor and employment, employee benefits and compensation, healthcare, insurance and risk management, technology and privacy and data security concerns, her experience encompasses work with management of a diverse array of clients and matters including domestic and multinational employers across many industries, health and other employee benefit plans, payroll, staffing, recruitment, technology, audit, training and coaching, consultin, and other outsourcing service providers, public and private health care providers, health and other insurers, banking and financial services, manufacturing, retail and other sales, hospitality, manufacturing, consulting, engineering bankruptcy, turnaround management restructuring and reengineering, and other change management, technology and other vendors, nonprofit, government and others domestically and internationally.
Author of a multitude of highly-regarded works and training programs on published by BNA, the ABA and other premier legal and other industry publishers, she also consults to and trains business and government and their leaders and speaks extensively about a wide range of general and special legal, business process and operations a and other concerns.
Beyond these involvements, Ms. Stamer also is active in the leadership of a broad range of other professional, charitable and civic organizations.
Through these and other involvements, she provides hands on leadership, consulting and other support to develop and build solutions, build consensus, garner funding and other resources, manage compliance and other operations, and take other actions to identify promote tangible improvements in health care and other operations and policies.
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©2018. Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press, Inc. All other rights reserved.