2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
Credit unions will face a complex and busy regulatory compliance environment in 2023. With a major r ...
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2023 Tax Calendar
VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
By Kyle Lusczakoski, Tax Shareholder
One major tax deduction changing after this year is bonus depreciation, which is especially important for businesses who own machinery, computer systems, software, certain vehicles, equipment or office furniture, to name a few. This is the last year businesses are eligible to claim the 100% bonus depreciation deduction, as the deduction amount will drop each subsequent year by 20% starting in 2023 and eventually sunset 2027, unless it is extended by Congress.
Similar to bonus depreciation, Section 179 allows a taxpayer to deduct 100% of the purchase price of new and used eligible assets. While Section 179 still allows for businesses to claim an immediate deduction on certain capital acquisitions, there are additional limitations that may prevent assets from the same deductions under bonus depreciation.
If you plan on purchasing bonus deprecation qualifying property, it may be wise to do so and place it in service before year end to maximize the 100% deduction for 2022. To ensure you’re taking advantage of all the tax credits and incentives available to you and your business, be sure to work with your trusted business tax advisor for proactive tax planning. Contact Doeren Mayhew’s business tax accountants today to get started.
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