If your business buys large 1-time equipment purchases (large being anything over $2500 per piece), this one's for you...........
Good news is that the US House passed a new tax bill the other day that reinstates 100% bonus depreciation, retroactive back to 2023. (Currently only 60% of the purchase price of a new piece of equipment is deductible and was set to drop to zero over the next few years).
This means that your business will once again get a full deduction for your equipment and renovation purchases.
It also means that for any of you that are currently doing a cost seg analysis on your rental properties, reinstatement of 100% bonus depreciation will help considerably.
And if you're in the market for a heavy SUV, you too will get a bigger tax break.
The only remaining hurdle for final approval is the bill now moves to the Senate for debate and hopefully , approval.
This means that since I'm in the middle of preparing many of your business tax returns right now, we're not going to file any business tax return with equipment/renovation/ cost seg/ heavy suv deductions until we know if the Senate approves. If it does, your 2023 business tax return might be impacted (in a good way)
The bill moved quickly through the House and we're hoping the Senate also moves it along at the same fast pace.
If you have questions, please let me know.