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TCJA changed the depreciation rules for new farm machinery and equipment. The change includes:

TCJA changed the depreciation rules for new farm machinery and equipment. The change includes:

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The Change includes following:-

Section 179- Prior to the 2018 change, Qualifying property which includes Plant and equipment can be directly expensed up to the amount of 510,000 subject to phase out of 2,030,000. But after 2018 beginning now taxpayer can expense directly without capitalizing up to the amount of 1,000,000 subject to phase out of 2,500,000

Bonus Depreciation- Prior to the change Bonus depreciation was 50% on qualifying property which includes Farm Equipment and machinery but now up till 2022 it has been increased to 100 %

Person who capitalizes the whole - if a person capitalizes the whole assets and does not treat them as expense for them the depreciation has increased from 150 % declining life to 200 % Declining life. The life has also been decreased from 7 Years to 5 Years.

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ekkarill92 answered 3 months ago
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