This can be done for both cash basis and accrual basis tax-payers and has been the go-to tax planning strategy for many, many years. It’s still important to consider how timing will affect future years’ net income. Cash basis taxpayers can increase deductions by paying their bills in 2022, stocking up on supplies, and taking…
2022 is the last year for 100% bonus depreciation for new and used assets purchased and placed in service during the year. The Tax Cuts and Jobs Act increased bonus depreciation from 50% to 100% through 2022 and it will decrease by 20% per year through 2026. The IRS puts limits on how much you…
Section 179 may be elected to expense the cost of tangible property such as machinery and equipment purchased and placed in service during the year up to $1.08 million, with a $2.7 million spending cap before reducing the deduction dollar for dollar. The TCJA added qualified improvement property which can be immediately expensed instead of…