Log Out

IRS Issues Guidance on Sec. 179(a) Expenses, 168(g) Depreciation

December 26, 2018

The U.S. Internal Revenue Service (IRS) issued guidance on deducting expenses under Section 179(a) and on deducting depreciation under Section 168(g) in Revenue Procedure 2019-08 (PDF), as amended by the Tax Cut and Jobs Act (TCJA). The new rules generally apply to tax years beginning after 2017. Sec. 179 allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service. For tax years beginning after 2017, the TCJA increased the maximum 179 expense deduction to $1 million from $500,000. The phase-out limit increased from $2 million to $2.5 million. These amounts are indexed for inflation for tax years beginning after 2018.