{"id":3028,"date":"2026-01-15T18:27:51","date_gmt":"2026-01-15T18:27:51","guid":{"rendered":"https:\/\/gtmtax.com\/?post_type=insight&p=3028"},"modified":"2026-01-15T18:42:26","modified_gmt":"2026-01-15T18:42:26","slug":"irs-notice-2026-11-bonus-depreciation","status":"publish","type":"insight","link":"https:\/\/gtmtax.com\/insight\/irs-notice-2026-11-bonus-depreciation\/","title":{"rendered":"IRS Notice 2026-11 (Bonus Depreciation)"},"content":{"rendered":"
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On January 14, 2026, the IRS released Notice 2026\u201111, which provides interim guidance on the newly reinstated permanent 100% additional first\u2011year depreciation deduction under IRC \u00a7168(k).<\/p>\n

The Notice implements changes enacted by the One Big Beautiful Bill Act (OBBBA) and includes several important updates:<\/p>\n

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  • Permanent 100% Bonus Depreciation<\/strong>: The OBBBA establishes a permanent 100% additional first\u2011year depreciation deduction for qualified property acquired and placed in service after January 19, 2025.<\/li>\n<\/ul>\n
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    • Eligibility Rules<\/strong>: Taxpayers should continue applying existing \u00a7168(k) regulations but with updated acquisition\u2011date thresholds (for example, substituting \u201cSeptember 27, 2017<\/em>\u201d for \u201cJanuary 19, 2025<\/em>\u201d and substituting \u201cSeptember 28, 2017<\/em>\u201d for \u201cJanuary 20, 2025<\/em>\u201d) aligned to the new law. The guidance clarifies how to determine whether property qualifies and how to calculate the allowable deduction.<\/li>\n<\/ul>\n
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      • Newly Eligible Property<\/strong>\u00a0\u2013 Sound Recording Productions: For the first time, qualified sound recording productions are included as eligible property. These productions qualify if principal recording begins in a taxable year ending after July 4, 2025, and are treated as placed in service upon initial release.<\/li>\n<\/ul>\n
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        • Taxpayer Elections<\/strong>: The Notice outlines several optional elections, including using a 40% (or 60%) deduction instead of 100% for certain property, electing bonus depreciation for specified plants, or opting out for qualified sound\u2011recording productions.<\/li>\n<\/ul>\n
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          • Interim Reliance<\/strong>: Until proposed regulations are issued, taxpayers may rely on the Notice in full for property placed in service in tax years beginning before the forthcoming regulations are finalized which is anticipated to be later this year.<\/li>\n<\/ul>\n\n <\/div>\n<\/div><\/div>\n\n
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            Explore how this topic impacts your organization<\/h2>\n <\/header>\n
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