Guidance issued on PATH Act depreciation, Sec. 179 changes

The revenue procedure covers amended returns claiming property expensing, qualified real property, and bonus depreciation transition rules.
By Sally P. Schreiber, J.D.

The IRS issued guidance for taxpayers to take advantage of a number of tax provisions that had been extended or amended by the Protecting Americans From Tax Hikes (PATH) Act of 2015, Division Q of the Consolidated Appropriations Act, 2016, P.L. 114-113. The procedure provides guidance for applying the revised rules for:

  • Sec. 179, including how to make the Sec. 179 election on an amended return, the type of air conditioning and heating units that qualify as Sec. 179 property, and the treatment of qualified real property as Sec. 179 property;
  • Bonus depreciation, including the extended placed-in-service dates, the phasedown of the bonus depreciation property after 2017, and what fruit and nut plants are eligible for bonus depreciation; and
  • The revised depreciation recovery period for Indian reservation property, including the election out of accelerated depreciation for such property.

This procedure obsoletes Rev. Proc. 2008-54 for tax years beginning after 2014 and was effective April 20, 2017.

  • Rev. Proc. 2017-33

—By Sally P. Schreiber, J.D., a JofA senior editor.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.