New Rules Emerge Guiding Bonus Depreciation

Bruce A. Willey is a respected presence in the Cedar Rapids, Iowa, business community who guides the Willey Law Firm, PC. The firm enables clients to maximize their revenues and minimize tax obligations. Bruce A. Willey focuses on new tax laws and regulations that impact small business owners in Iowa. 

As reported in Entrepreneur, one tax law that came into effect in 2017 centers on Section 179, bonus depreciation and expensing. Under the expensing provision, capital investments of up to half a million dollars for certain properties can be claimed as expense deductions instead of as depreciated breaks. Made permanent in 2015 with the PATH Act, the bonus depreciation provision does not apply when asset purchases exceed $2 million. 

With the new rules in place, HVAC units undertaken after December 31, 2015, are eligible as an expense deduction. Another aspect of the bonus depreciation provision is that additional depreciation can be claimed on property during the first year of the recovery period as long as it is put into use between 2015 and 2019.

The bonus depreciation is 50 percent for 2015, 2016, and 2017, while in 2018, this drops to 40 percent and in 2019 to 30 percent. This means that businesses may want to look at placing newly purchased, up-to-date equipment in service in 2017 rather than waiting until 2018 or beyond.

American Institute of Certified Public Accountants - CGMA Designation

A certified public accountant with more than 30 years of experience, Bruce A. Willey serves as a consultant at American Tax Law Planning, LLC, in Cedar Rapids, Iowa. As a professional certified public accountant, Iowa resident Bruce A. Willey is also a member of the American Institute of Certified Public Accountants (AICPA).

Established in 1887, the American Institute of Certified Public Accountants was created to act as an advocate for the CPA profession before public interest groups and legislative bodies. The AICPA also features research programs and educational materials that help members stay up-to-date with the latest accounting rules and procedures, as well as increase their skills and knowledge in the industry. 

One of the programs established by the AICPA is the Chartered Global Management Accountant (CGMA) designation. Members qualify for this designation by passing an exam that demonstrates expertise in business strategy, finance, management and operations. Applicants for the CGMA designation will find resources available in areas including risk management assessment, decision-making, and scenario-planning.