Get Your Bonus Depreciation (While You Can)!

For many of us, it seems like 50% bonus depreciation has always been around. The truth is that the availability of bonus depreciation, and the percentages allowed as bonus, have changed many times in the past 15+ years.

A short history of bonus depreciation rates:

  • Sept. 11, 2001 to May 5, 2003 – 30%
  • May 6, 2003 to Dec. 31, 2004 – 50%
  • Jan. 1, 2008 – Sept. 8, 2010 – 50%
  • Sept. 9, 2010 to Dec. 31, 2011 – 100%
  • Jan. 1, 2012 to Dec. 31, 2017 – 50%
  • Jan. 1, 2018 to Dec. 31, 2018 – 40%
  • Jan. 1, 2019 to Dec. 31, 2019 – 30%
  • Jan 1, 2020 – Forever? – ZERO

Congress has decided to begin weaning us off bonus depreciation, starting January of 2018. This year is the final year of 50% bonus depreciation. In 2018, the percentage drops to 40%. In 2019, the percentage drops again to 30%. Then, beginning January 2020 (absent legislation to the contrary), bonus depreciation disappears. So, if you’ve been banking on that 50% bonus depreciation to help you recover the cost of your personal property investments, you’d better spend that money by December 31, 2017, or the new, lower rate will apply.

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