Guidance issued on PATH Act depreciation, Sec. 179 changes

By Sally P. Schreiber, J.D.

The IRS issued guidance for taxpayers to take advantage of a number of tax provisions that had been extended or amended by the Protecting Americans From Tax Hikes (PATH) Act of 2015, Division Q of the Consolidated Appropriations Act, 2016, P.L. 114-113 (Rev. Proc. 2017-33). The procedure provides guidance for applying the revised rules for:

1. Sec. 179, including how to make the Sec. 179 election on an amended return, the type of air conditioning and heating units that qualify as Sec. 179 property, and the treatment of qualified real property as Sec. 179 property;

2. Bonus depreciation, including the extended placed-in-service dates, the phase down of the bonus depreciation property after 2017, and what fruit and nut plants are eligible for bonus depreciation; and

3. The revised depreciation recovery period for Indian reservation property, including the election out of accelerated depreciation for such property.

This procedure obsoletes Rev. Proc. 2008-54 for tax years beginning after 2014 and is effective April 20, 2017.

—Sally P. Schreiber (Sally.Schreiber@aicpa-cima.com) is a Tax Adviser senior editor.

Newsletter Articles

SPONSORED REPORT

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.