AED Alert: IRS Issues Key Proposals Pertaining to Tax Law’s Pass-Through Deduction, 100 Percent Bonus Provisions

The U.S. Department of Treasury and Internal Revenue Service (IRS) recently issued proposed regulations regarding two key provisions from the new tax law, the Tax Cuts & Jobs Act.

One proposed rule pertains to Section 199A of the statute (“Qualified Business Income Deduction”), which includes the 20 percent deduction for pass-through businesses. The other deals with the law’s 100 percent bonus depreciation provision. Both are key parts of the new law for equipment dealers.

It’s imperative that equipment dealers consult with your CPA and tax attorney to determine the impact on your company. The IRS is accepting public comment on both proposals. Please provide any feedback and concerns to AED’s Vice President of Government Affairs Daniel B. Fisher as soon as possible.

Review the Section 199A proposal, a notice providing methods for calculating the deduction and a FAQ document here.

Review the 100 percent bonus depreciation proposal here.