David McGuire is a leading expert on cost segregation, fixed assets and depreciation law and a co-founder of McGuire Sponsel. getty In 2017, the Tax Cuts and Jobs Act was signed into law by then-President Trump. This landmark bill reduced the top tax bracket from 39.6% to 37%, increased standard deductions and reduced the corporate tax rate from 35% to 21%. The TCJA also allowed for immediate expensing of certain assets, also known as “bonus depreciation” through the end of 2022. To pass the bill, the Senate had to utilize a process called reconciliation. At the time of passage, Republicans held a slim majority in the Senate and needed to utilize reconciliation to get around the filibuster. To meet Senate budgetary rules, some major portions of the TCJA were scheduled to phase out or expire completely. While many policy writers expected these provisions to be extended, Congress was not able to pass these extensions. This led to many changes to the tax code affecting 2022 business returns. The biggest two changes are the amortization requirement of Section 174 and the changes to Section 163(j). Amortizing Section 174 Expenses The requirement to amortize 174 expenditures is getting the most attention. […]
Expired TCJA Provisions Hurt Businesses Come Tax Time
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