There are enhanced write-offs for business asset purchases in the law. 100% bonus depreciation for many assets put into use during the year.
The break applies to assets put in service after Sept. 27, 2017, and is temporary… generally lasting until 2022 and then phasing out 20% each year thereafter. A higher cap on expensing business assets. It doubles to $1 million. More property is eligible for first-year bonus depreciation or expensing. Depreciation limitations on passenger automobiles are increased. The deduction that firms claim for interest on business debt is limited. Their net interest write-offs will be capped at 30% of adjusted taxable income, with disallowed interest carried forward. Firms with $25 million or less of gross receipts, real estate companies and certain regulated public utilities will be exempt. Among the many other business breaks that are eliminated or pared back: Business entertainment. Country club dues. The 9% domestic production deduction. Net operating losses can offset only 80% of taxable income, and NOL carrybacks are generally prohibited. Tax-deferred like-kind exchanges are limited to real property
not held primarily for sale. Sexual harassment settlement payments aren’t deductible if subject to a nondisclosure agreement. Attorneys can’t deduct litigation costs paid in contingency fee cases until the contingency ends. Plus local lobbying expenses.