- IRS Again Lends a Hand in Navigating the Murky Waters of Bonus Depreciation
- May 31, 2017 | Author: Ellen McElroy
- Law Firm: Eversheds Sutherland (US) LLP - Washington Office
In a new private letter ruling (PLR 201709007), the IRS gave a company additional time to claim bonus depreciation, which allows a business to take an immediate first-year deduction of 50 percent on the purchase of eligible property.
Importantly, the request for additional time to claim bonus depreciation was made well after the company filed its federal income tax return and depreciation was initially claimed. Further, the request was made after an outside advisor identified that the company initially made the wrong election following the advice of a former employee.
In their article for AccountingWEB, Eversheds Sutherland (US) attorneys Ellen McElroy and Michael Resnick cover the background of bonus depreciation provisions and discuss key takeaways from the ruling.