On Aug. 3, the IRS released guidance regarding small-business accounting method changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which was enacted into law in December 2017. This guidance spells out the process by which eligible small-business taxpayers can obtain automatic consent to change accounting methods now permitted under the TCJA, which expanded the number of small-business taxpayers eligible to use the cash method of accounting beginning after Dec. 31, 2017. For more details regarding this guidance, click here and/or consult a tax professional.
Also on Aug. 3, the Treasury Department and IRS jointly issued proposed regulations regarding the new 100-percent depreciation deduction that allows businesses to write off most depreciable assets in the year in which they are placed in service. This new 100-percent depreciation deduction generally applies to depreciable assets with a recovery period of 20 years or less and certain other property, such as machinery, equipment, computers, appliances and furniture. For more details regarding these proposed regulations, click here and/or consult a tax professional.