New and used personal property placed in service in 2020 and used in a trade or...

New and used personal property placed in service in 2020 and used in a trade or business qualifies for additional first-year depreciation.

Expert Solution

As per the INTERNATIONAL REVENUE SERVICE(IRS) TREASURE under section 168 (K)(2) and section 13201h if assessee satisfied def8nation of eligible property for clam additional depreciation in first year use before amendment only 50% of value of the property is allowed as additional depreciation but after amendment assessee eligible for 100% of value of asset. For additional depreciation assessee satisfied some condion as follows.

1. The depreciable property must be of specified type.

2.The original use of the property must commence with the taxpayer or is satisfied the section 168(K)(2)(E)(ii).

3. The depreciable property must be place in service by taxpayer within time or plant or graft before the dat specified for additional depreciation.

4. Taxpayer mus acquired it after 27th September,2017.

For additional depreciation taxpayer can claim depreciation on new or use property for that taxpayer satisfied the condition like previous is not use by taxpayer him self, property not acquire from related or components group of taxpayer, etc.

ekkarill92 answered 2 years ago

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