{"id":2150,"date":"2022-11-29T18:17:04","date_gmt":"2022-11-29T18:17:04","guid":{"rendered":"https:\/\/gtmtax.com\/insight\/bonus-depreciation-168k-changes-coming-in-2023\/"},"modified":"2025-08-05T12:45:32","modified_gmt":"2025-08-05T12:45:32","slug":"bonus-depreciation-168k-changes-coming-in-2023","status":"publish","type":"insight","link":"https:\/\/gtmtax.com\/insight\/bonus-depreciation-168k-changes-coming-in-2023\/","title":{"rendered":"168k Depreciation: Key Changes and Impacts on Bonus Depreciation Expensing"},"content":{"rendered":"
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Changes are coming to 100-percent bonus depreciation expensing as a result of the 2017 Tax Cuts and Jobs Act<\/a>. Here are the key questions to ask as you prepare, and what you can expect. To learn more about GTM\u2019s Tax Depreciation Services<\/a> or to speak with someone who can guide you through the process, contact us<\/a>.<\/span><\/p>\n

What is Bonus Depreciation?<\/b><\/h2>\n

The provisions of bonus depreciation were enacted in response to the events of September 11th<\/sup>, 2001, to spur business investment. Bonus depreciation, also referred to as additional first year depreciation, has varied since enactment, with expensing ranging from 30 \u2013 100 percent of the depreciable basis for qualified property.<\/p>\n

Bonus depreciation must be claimed unless a taxpayer makes an election out. The election is made annually on a statement filed with Form 4562. The election is made separately for each class of property, which generally consists of 3-, 5-, 7-, 10-, 15-, & 20-year property.<\/p>\n

What Asset Types Are Impacted By These Changes (Qualified Property)?<\/b><\/h2>\n

When considering the upcoming change, it is important to define bonus-eligible property (i.e., qualified property). Although certain exceptions may apply, property generally qualifies for bonus depreciation if one<\/u><\/b> of the following characteristics describe it:<\/p>\n