May Update From Gudorf Law Group

Are you concerned about any of your adult children? Estate planning can pose extra challenges for families with adult children struggling with addiction, marital issues, or irresponsibility with money. The last thing you want is for your wealth to end up having a negative impact on your child, or to see them squander their inheritance. Many parents are concerned about what they can do to shield an adult child who struggles with problems like these from bad decisions and bad people that could worsen their child’s situation.

Business owners know that when they purchase property for business use, such as a delivery truck or machinery for production, they can claim deductions for the purchase of that equipment as a business expense under Section 179 of the United States Internal Revenue Code, instead of the cost of the business property needing to be capitalized and depreciated. While Section 179 is typically applied to equipment, it may also be used to allow a taxpayer to deduct the cost of certain qualified real property improvements, including security, fire, and other alarm systems, roofs, and HVAC systems.

The Section 179 election was created to help small businesses and encourage them to invest in their operations. How does the newly-enacted Tax Cuts and Jobs Act (TCJA) affect the benefit that this section of the tax code offers to business owners?