Article Date:
March 2020

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If You Don’t Want 100 Percent Depreciation, Elect Out or Else

As you likely know, the Tax Cuts and Jobs Act increased bonus depreciation to 100 percent.


Unlike most tax provisions that involve a tax election, this one requires you to elect out if you don’t want it.


For example, you (or your corporation) buy two $50,000 trucks, each with a gross vehicle weight rating of 6,500 pounds and a bed length of 6.5 feet. You use the trucks 100 percent for business. Because of the weight and bed size, the trucks are exempt from the luxury passenger vehicle depreciation limits.


You have five choices on how to deduct the vehicles: ... Log in to view full article.

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