Get Form IT-398 New York State Depreciation Schedule For IRC Section 168(k) Property Tax Year 2023

§168(k), Special Allowance for Certain Property. The adjusted basis of the qualified property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.

In 2023, businesses can write off up to 80% of the purchase price of an asset placed into service in the calendar year, and then depreciate the remaining 20% cost of the property over the course of several years. Below is the full bonus depreciation phase-out schedule: 2023: 80% 2024: 60%

In 2023, the bonus depreciation phase out begins. Businesses can write off only 80% — instead of 100% — of an eligible property's purchase price in 2023. In the years following, that percentage will reduce by 20 points each year until bonus depreciation is completely phased out by 2027.

To be eligible for bonus depreciation, eligible property must be MACRS property with a useful life of 20 years or less, certain depreciable computer software, or qualifying leasehold improvement property.

The rules allow Bonus Depreciation to 100% for all qualified purchases made between September 27, 2017 and January 1, 2023. Bonus Depreciation now ramps down to 80%, starting in 2023. Bonus depreciation will continue to ramp down for ensuing years: 60% for 2024, 40% for 2025, 20% for 2026, and 0% beginning in 2027.