IRS News Release: Review Depreciation Deduction Rules (IRC §167)

Businesses should be aware of tax rules for deducting depreciation on certain property, the IRS stated. The IRS explained that businesses can generally depreciate tangible property, but not real property. Part of the depreciation calculation is the amount that can be expensed for certain property in the first year the property is placed in service under tax code Section 179. The 2017 tax act, Pub. L. No. 115-97, made several changes to the depreciation rules, including increasing the maximum first-year expensing amount from $500,000 to $1 million, the IRS noted. [IR-2019-92 (May 9, 2019); IRS Tax ...