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

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.