By Jared Streshley firstname.lastname@example.org
Did your company have more net income in 2019 than you were expecting? Are some of your business use assets outdated and could use replacement? If so, this simple tip can help your company for future years.
Typically, when you purchase an asset for your use by your company, this asset will depreciate over the period of time that it will be useful. By using bonus depreciation, you can fully expense the purchase of an asset in the first year of use to substantially reduce your company’s taxable income. This election was originally expected to phase out in 2020, but has been extended through the 2022 tax year.
There are a few rules to follow under bonus depreciation
This election to take full 100% of the assets value as depreciation in the first year of an assets use will begin to phase out after the year 2022. Meet with our CPAs to discuss the optimal plan you can take to effectively take advantage of this election and plan an update of your assets in the most advantageous way for your business.