Take Advantage of Deductions for Business Investments

The U.S. tax code generally encourages investments made to strengthen or grow a business. In 2018, the Tax Cuts and Jobs Act (TCJA) made it possible to write off the full cost of large asset purchases in the first year with Section 179 deductions and/or bonus depreciation. This includes eligible vehicles, up to certain limits.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act expanded the deduction available to businesses that invest in qualified improvement property. This tax benefit may be important for companies that had to reconfigure office or retail space, remodel restaurant dining areas, or make other improvements for coronavirus safety reasons in 2020.

Your tax professional can help you determine which of your investments might be eligible for Section 179 expensing, bonus depreciation, or both.

Stacking Tax Breaks