DC Updates

Bonus Depreciation Makes it out of Committee

A small victory for taxpayers this week as the House Ways and Means Committee passed a proposal to revive bonus depreciation and make it permanent. Although unlikely to become law, this move by Congress could be a sign that a temporary extension for bonus depreciation is possible.

Small Businesses Need a Written Capitalization Policy

New repair regulations from the IRS require businesses to keep a written capitalization policy if they would like to utilize the safe harbor provisions of the regulations. Companies with audited financial statements can qualify for a safe harbor capitalization policy that allows them to deduct all assets under $5,000.