Election to Expense and Bonus Depreciation After 2017
alternative minimum tax; office furniture; taxpayers; tax cuts; depreciation; tax elections; capital cost recovery allowances
Practical Tax Strategies, 100(4), 4-13
The first version of this article on the election to expense (Section 179) and bonus depreciation (Section 168(k)) appeared in the November 2013 issue.1 At that time, carryforwards were not advantageous. The article presented two techniques for avoiding carryforwards: formulas and the trialand-error method. For a discussion of the formulas, using outdated numbers, please see that article. This article uses the trial-and-error method because this method better illustrates the features of Section 179. This article takes into account the Tax Cuts and Jobs Act2 (TCJA), most provisions of which take effect in 2018.