The Tax Cuts and Jobs Act of 2017 (TCJA) had a tremendous impact on commercial real estate, including liberalizing the depreciation provisions. Bonus depreciation was expanded and increased from 50 to 100 percent for qualifying assets placed in service beginning after September 27, 2017, through December 31, 2022. After December 31, 2022, the deduction percentage for bonus depreciation began decreasing by 20 percent per year and would have been fully phased out after 2026. Thanks to the One Big Beautiful Bill Act (OBBBA) passed in 2025, 100% bonus depreciation is now available on new and used assets. Because of changes in the OBBBA, which has restored 100% bonus depreciation. increased the depreciation that can be taken under Section 179 and added a new, important depreciation topic — qualified production property, this topic is vital for tax practitioners advising business taxpayers.
DESIGNED FOR
Accounting and finance professionals who anticipate advising clients with respect to depreciation of business property.
BENEFITS
- Prepare attendees for changes in the depreciation rules taking place in 2026 and after
- Alert attendees to potential changes in bonus depreciation taking place in 2026 and after
HIGHLIGHTS
- President Trump’s promise to restore full bonus depreciation effective January 20, 2025
- Bonus and Section 179 depreciation rules for 2025
- 2025 legislative changes that could extend the TCJA depreciation changes for many years or even make them permanent
- Possible return of 100% bonus depreciation
- What will the depreciation rules be in 2026 and beyond if the TCJA depreciation rules are not extended beyond 2025
- Section 179 expensing rules for 2025 and beyond, including how Section 179 applies to business vehicles
- 2025 rules for vehicle depreciation
PREREQUISITES
A basic understanding of the tax rules relating to individual income tax
ADVANCE PREPARATION
None
ADDITIONAL NOTES
- Qualifies for IRS credit.