ENHANCED DEPRECIATION DEDUCTIONS - UPDATE
Business may immediately elect to deduct up to $500,000 of the cost of qualifying asset acquisitions and is indexed to inflation
These assets apply to purchases of:
1) Computer software
2) Qualified leasehold improvements
3) Retail improvements
4) Restaurant improvements
These assets do not apply to purchases of:
1) Vehicles
2) Buildings-residential and commercial
3) Land
After applying this large depreciation deduction, if there is any undepreciated balance, bonus depreciation rules are then applied at:
1) 50% for property placed in service in 2015, 2016 and 2017.
2) 40% for 2018 and 30% for 2019