By Bob Jennings of TaxSpeaker
The questions about depreciation have become common enough that we think it is time for a central reference chart for all of us for the changes from the TCJA (9/2017), the Budget Bill (12/2019), the Families First Act (3/2020) and the CARES Act (3/2020).
Depreciation changes 2018-2020
| Description | TCJA Effective after 2017 |
Budget Retroactive after 2017 | CARES Retroactive after 2017 |
| Bonus Depreciation-100% | X | ||
| Bonus-Additional $8,000 1st year luxury vehicles | X | ||
| Bonus-Qualified Improvement Property | X | ||
| Bonus-TV/Films/Theatre-Initial production | X | ||
| Bonus-Used Property | X | ||
| Computers No longer listed property | X | ||
| Farm Equipment-New-Using 5 year life | X | ||
| Farm Equipment-New-Using 200% DB instead of 150 | X | ||
| Motorsports complex 7 year recovery period | X | ||
| Qualified Improvement Property retroactive to 2018 life change from 39 years to 15 years | X | ||
| Race Horse Lives-3 Years | X | ||
| Sec. 179 $1,000,000 annual deduction floor | X | ||
| Sec. 179 $2,500,000 deduction phaseout floor | X | ||
| Sec. 179 Commercial Roofs | X | ||
| Sec. 179 HVAC, Security & Fire Systems | X | ||
| Sec. 179 Permanent | X | ||
| Sec. 179 Qualified Improvement Property | X | ||
| Sec. 179 Rental Personal Property Qualifies | X | ||
| Sec. 179 TV/Films/Theatre-Initial Production | X |
Retirement changes 2018-2020
| Description | TCJA Effective after 2017 |
Budget Retroactive after 2017 | CARES Retroactive after 2017 |
| IRA-2019 deposit extended to 7/15/20 | X | ||
| IRA-RMD Age increased to 72 | X | ||
| IRA-Stipends qualify as earned income | X | ||
| IRS-Upper age limit repealed | X | ||
| Mandatory withholding on qualified plan distribution waived | X | ||
| Penalty exception-$5,000 within 1 year of birth or adoption, 3 year re-deposit | X | ||
| Pension Plan-New Plan Credit increased to $250 per employee or $500 ($5,000 limit) | X | ||
| Pension Plan-Automatic enrollment feature $500 credit | X | ||
| Qualified plan loans limit increased to $100,000 | X | ||
| RMD waived for 2020 | X | ||
| Roth recharacterizations repealed | X | ||
| Withdrawals by non-spouse pension beneficiary limited to 10 years for deaths after 2019 | X | ||
| Withdrawals exempt from penalty if Covid-19 financial or illness issue | X | ||
| Withdrawals get 3 year re-deposit period | X | ||