As of my last update, the Tax Cuts and Jobs Act (TCJA) allowed for 100% bonus depreciation for qualified property acquired and placed in service between September 27, 2017, and December 31, 2022. This means businesses could deduct the full cost of eligible assets in the year they were purchased and placed in service.
However, this 100% bonus depreciation is set to begin phasing down after 2022. The schedule for the phase-down is as follows:
- 80% for property placed in service in 2023
- 60% for property placed in service in 2024
- 40% for property placed in service in 2025
- 20% for property placed in service in 2026
It’s important to check the latest updates or consult with a tax professional for any changes or additional details, especially since tax laws can be subject to change.
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