Navigating the Changing Landscape of Bonus Depreciation

The Tax Cuts and Jobs Act of 2017 (TCJA) had a tremendous impact on bonus depreciation. It significantly expanded which assets may qualify for bonus depreciation and established 10 years of bonus availability from Q4 of 2017 all the way through the end of 2026. 

Ten years of predictable rates allow real estate developers and professionals to strategically plan, incorporating bonus depreciation into their projections. The TCJA also removed the previous restrictions that prevented bonus depreciation on acquisitions.

The future of bonus depreciation rates remains uncertain and is subject to economic conditions and government policies.