Signature Tax Event 2022 Deck FINAL | Page 27

Expiring TCJA Provision for Businesses

A big tax benefit from the TCJA phase-out begins at the end of 2022 !

• TCJA temporarily allowed 100 % expensing for business property acquired and placed in service after 9 / 27 / 17 and before 1 / 1 / 23 . This 100 % bonus depreciation for qualifying property phases out as follows :
2022 = 100 % 2023 = 80 % 2024 = 60 % 2025 = 40 % 2026 = 20 % 2027 = 0 %
• For planning purposes – remember to be eligible for any of these bonus percentages , you must ensure that the assets are “ placed in service ” prior to the end of the year .