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2015 Depreciation FINALLY DECIDED!

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Protecting Americans from Tax Hikes Act of 2015

Bonus first-year Depreciation — Qualified property placed in service between 1/01/15 and 12/31/19 is allowed first-year bonus depreciation. The bonus depreciation percentage is 50% for property placed in service between 2015 and 2017, 40% for property placed in service during 2018 and 30% for property placed in service during 2019. In addition, the first-year passenger automobile limits have increased by $8,000 for 2014 through 2017, $6,400 for 2018 and $4,800 for 2019.

Section 179 — The maximum amount of section 179 allowed has increased from $25,000 to $500,000, for 2015 and later tax years. Of the $500,000, up to $250,000 for the 2015 tax year can be expensed for qualified real property. In addition, the $200,000 investment limitation has been increased to $2,000,000.

Qualified real property for section 179

—Qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) placed in service in a 2015 tax year is eligible for section 179 expensing. The maximum amount of section 179 expense allowed for qualified real property is $250,000.

Leasehold Improvements, Retail Improvements and Restaurant Building Improvements — Leasehold Improvements, Retail Improvements and Restaurant Building Improvements can permanently use the 15-year recovery period.