My CPA Guy Team

Section 179 Expensing

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 depreciating over 15 years, which means many repairs and renovations to nonresidential real property can be expensed. Land, land improvements and buildings or structural additions cannot be expensed. 

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