NEW 100% Write-Offs Under Trump's Big Beautiful Bill

About this video

• Video Title: NEW 100% Write-Offs Under Trump's Big Beautiful Bill
• Channel: Sherman - My CPA Coach
• Speakers: Sherman
• Duration: 00:09:36

Overview

This video explains new tax write-off opportunities, particularly 100% expensing, available under a recent tax law. CPA Sherman details how these provisions can be applied to vehicle purchases, equipment, real estate improvements, manufacturing facilities, and R&D expenses to significantly reduce tax liability.

Key takeaways

• 100% Vehicle Expensing: Vehicles weighing over 6,000 lbs and used more than 50% for business after January 19, 2025, may qualify for 100% write-off of the purchase price through bonus depreciation, avoiding passenger automobile limitations.
• Equipment and Machinery: Purchases of equipment, machinery, computers, software, furniture, and specialized industry equipment can be 100% expensed in the year they are placed in service, including costs like delivery and installation.
• Real Estate Improvements: Certain improvements to commercial or rental properties, such as new appliances, flooring, or fencing, can be immediately 100% expensed instead of depreciated over several years. For entire property purchases, a cost segregation study can identify components eligible for accelerated depreciation.
• Manufacturing Facilities: New production facilities that are owner-occupied and primarily used for production activities may qualify for 100% expensing of the building cost in the first year, provided there's a 10-year commitment.
• R&D Expensing: Domestic research and development expenses for developing or improving products, processes, or software can be 100% expensed, and may also qualify for an additional R&D tax credit of up to 20%.