Buy Now and Receive Bonus Depreciation Benefits

Kenworth t880 heavy duty equipment truck

If you’re thinking about pushing your buying decisions into 2019, consider the benefits of receiving this year’s bonus tax depreciation if you purchase a truck before year-end.

The Tax Cuts and Jobs Act, signed on December 22, 2017, greatly enhanced bonus depreciation opportunities available to businesses in the market to buy equipment. In 2018, taxpayers can elect a 100 percent bonus depreciation deduction under either IRC Section 179 or 168(k).

Bonus Depreciation
The PATH Act extends bonus depreciation for qualified property placed in service for the calendar years 2015-2019, subject to a phase-out schedule. When your business typically purchases equipment items, it can write those items off a little at a time through the depreciation. There were two enhancements under 168(k) that were not previously available or within Section 179, which are:

  • There is no dollar limit on the amount of property you can purchase that can qualify for the bonus depreciation
  • This deduction applies to both new and used equipment

Example Calculations:

 C-Corporation:      S-Corporation / Individuals:
$1,000,000 Equipment      $1,000,000 Equipment
x 21% Tax Rate     x 37% Tax Rate
 $210,000 Savings      $370,000 Savings

To learn more information about the laws or calculate potential savings, visit:

This summary was written to support the promotion or marketing of the matter addressed above, and is not tax advice provided by Murphy-Hoffman Company or MHC Kenworth. The taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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