Final regulations recently issued by the IRS provide guidance on additional first-year (bonus) depreciation under Sec. 168(k).
The additional guidance (T.D. 9916) clarifies the requirements for property to qualify for the deduction, including used property. The regulations also address recent legislative changes to the depreciation rules for qualified improvement property.
Additionally, the final regulations provide rules for consolidated groups and components acquired or self-constructed after Sept. 27, 2017, for larger self-constructed property on which production began before Sept. 28, 2017. Learn more.