Proposed Qualified Production Property Deductions.

As the new tax regulations head from the floor of the house to the senate. Accounting Personalized is here to assist you in the meaning behind the new codes being passed. One of which is the qualified production property deduction. With this new proposal, Taxpayers can deduct 100% of “qualified production property” at the point that it is put into service. This would be limited to certain newly constructed or acquired nonresidential real property located in the United States. The bill expresses that these properties must be in connection with the manufacturing, agricultural and chemical production, or refining of a qualified product. Whereas under the former code many of these properties would have to be depreciated over 39 years.