Soar to Success July 2018

SOAR TO SUCCESS -XO\ &RUH %XVLQHVV 6WUDWHJLHV deduct the cost of qualifying property rather thandepreciating it over time. Previously there was a limit of $500,000 for this deduction for property acquisition of $2million or less during the tax year. If you spent more than $2 million dollars, your $500,000 deduction began to phase out. Under the new law, these amounts are increased to a deduction of $1 million and the phase-out threshold amount is increased to $2.5 million in acquisition costs beginning in the 2018 tax year. Code Section 179 has also been expanded to include certain improvements made to nonresidential real property such as roofs, +9$& DQG ĆUH SURWHFWLRQV V\VWHPV DV ZHOO DV alarm and security systems. Prior to the new law, you were required to depreciate these costs over a period of years. If you plan to purchase a new passenger vehicle in 2018, the luxury auto depreciation OLPLWV KDYH EHHQ LQFUHDVHG IURP D ĆUVW year deduction to $10,000 and the additional ĆUVW \HDU ERQXVGHSUHFLDWLRQ IRU HOLJLEOH vehicles still remains in place. If this information has been helpful and you want to learn more, visit my website at actservices-inc.com .