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Accelerated Depreciation: Permanent Under the PATH Act?

March 14, 2016

Accelerated depreciation is a valuable tax break for restaurants and retailers—find out how the PATH Act adjustments impact this tax break.

The Protecting Americans from Tax Hikes (PATH) Act makes permanent a number of provisions under the tax code, including the accelerated depreciation tax break.

What is accelerated depreciation?

Accelerated depreciation is the process of depreciating fixed assets at a quicker rate earlier in their useful lives. Thus the amount of depreciation in the earlier years of an asset’s life is greater than the straight-line amount, but will be less in the later years. Taxpayers using this method will benefit from a reduction of taxable income early in the life of an asset.

What does the PATH Act extend?

The PATH Act has made permanent the ability to apply a shortened recovery period of 15 years (as opposed to 39 years) to qualified leasehold improvement, restaurant and retail-improvement property.
Download our eBook, “2015 PATH Act: What All Taxpayers Need to Know” for helpful planning tips when it comes to applying accelerated depreciation to your property.

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