Tax Facts

7912 / What temporary bonus depreciation rules may apply in the context of a cattle program?

Editor’s Note: The 2017 tax reform legislation generally allowed 100 percent bonus depreciation for business owners with respect to property that is placed in service after September 27, 2017 and before January 1, 2023. Further, under the 2017 tax reform legislation, the requirement that the property be originally placed into service by the taxpayer is removed (i.e., tax reform permits accelerated expensing of used assets, see Q ).1

Temporary Bonus Depreciation Rules

The rules governing bonus depreciation have been amended several times. Under the 2017 tax reform legislation, the following rules apply.

Bonus first-year depreciation applies only to qualified property. It is claimed in the first year that the property is placed in service. It is the following percentage of the unadjusted depreciable basis of qualified property:

Property placed in service after September 27, 2017 and before January 1, 2023: 100 percent expensing.

Property placed in service after December 31, 2022 and before January 1, 2024: 80 percent expensing.

Property placed in service after December 31, 2023 and before January 1, 2025: 60 percent expensing.

Property placed in service after December 31, 2024 and before January 1, 2026: 40 percent expensing.

Property placed in service after December 31, 2025 and before January 1, 2027: 20 percent expensing.

2027 and thereafter: 0 percent expensing.2

Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.