If there is furniture, equipment, or other items you are considering for your business, now may be the time to purchase. This is the final year to take advantage of 100% Bonus Depreciation under the Tax Cuts and Jobs Act (TCJA). Beginning in 2023, the Bonus Depreciation benefit will be reduced each year until 2027 when the benefit is set to expire.
Qualified property includes tangible property used in your business that has a useful life of 20 years or less. The following are examples of qualified property: equipment, furniture, fixtures, machinery, barn, and computer software. Normal depreciation is required; however, bonus depreciation is optional. You may elect out of claiming bonus depreciation.