IRS Issues PATH Act Guidance on Bonus Depreciation Extenders

Friday, August 26, 2016 - 4:00PM

The Internal Revenue Service (IRS) today issued Revenue Procedure 2016-48 to provide guidance to taxpayers regarding certain extenders under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).  The revenue procedure provides guidance for three items that were extended by the PATH Act:  (1) the deduction under Section 179(f) of up to $500,000 of specified real property additions; (2) the extension of the placed-in-service date per Section 168(k)(2) to qualify for the 50-percent additional first year depreciation deduction; and (3) the election by some corporations to increase their AMT credit limitation under Section 53(c) if they forego the 50-percent additional first year depreciation deduction.

 

Read more about bonus depreciation in Michael Novogradac’s Washington Wire column in the September issue of the Novogradac Journal of Tax Credits.

Learn more about Novogradac's expertise and many services