Tax Reform: Changes to Depreciation Affect Businesses Now

As employers across the country celebrate National Small Business Week, the IRS reminds businesses that the passage of the Tax Cuts and Jobs Act may affect their depreciation deductions and taxes.  Business taxpayers can generally depreciate tangible property except land, including buildings, machinery, vehicles, furniture and equipment.  Changes to depreciation and how they will affect businesses may include:

  • Businesses can immediately expense more under the new law; taxpayers may elect to expense the cost of any property and deduct it in the year the property is placed in service.
  • Maximum deduction increased from $500,000 to $1 million.
  • The phase-out threshold increased from $2 million to $2.5 million.
  • The new law allows taxpayers to elect to include improvements made to nonresidential property. The improvements must have been made after the date the property was first placed in service.

These improvements include:

  • Any improvement to a building’s interior
  • Roofs
  • Heating and air conditioning systems
  • Fire protection systems
  • Alarm and security systems

Improvements that do not qualify:

  • Enlargement of the building
  • Service to elevators or escalators
  • Internal structural framework of the building

These changes apply to property placed in service in taxable years beginning after December 31, 2017.  For more information go to: Changes to Depreciation Affect Businesses Now. https://go.usa.gov/xQ8ux

Helping businesses be more successful.

Questions or Request? Please email us at: Info@WindhamChamber.com

Windham Region Chamber of Commerce
1010 Main St., P.O. Box 43
Willimantic CT 06226
Phone: (860) 423-6389
Fax: (860) 423-8235

Corporate Sponsors

Savings Institute Key Bank Eversource
Hit Music i98.3 Gutter Guys
The Chronicle Logistics Consulting WILI 1400 AM

A very special thank you to our Corporate Sponsors for your dedication and continued support to our region.

We ♥ Feedback

We value your opinion, please let us know if you want to see more of something you like or how we can improve upon anything!


   Submit Feedback

Connect With Us

We accept the following payment: