Deductions and Write-Offs

For tax years beginning after December 31, 2017 and before January 1, 2026, the overall itemized deduction limitation of 3% of the excess of AGI over the threshold amount (applicable to certain itemized deductions) is suspended.

100% additional first-year bonus depreciation is allowed for qualified property acquired and placed into service after September 27, 2017 and before January 1, 2023.

The new rules eliminate the requirement that the original use of the property commence with the taxpayer. As such, bonus depreciation is available for new or used property.

Taxpayers have a right to elect 50% bonus depreciation for property placed into service after September 27, 2017 during the first tax year that ends after September 27, 2017.
In the years that follow the bonus depreciation percentage will diminish. i. For property placed into service after December 31, 2022 and before January 1, 2024 bonus depreciation is 80%.
ii. For property placed into service after December 31, 2023 and before January 1, 2025 bonus depreciation is 60%.
iii. For property placed into service after December 31, 2024 and before January 1, 2026 bonus depreciation is 40%.
iv. For property placed into service after December 31, 2025 and before January 1, 2027 bonus depreciation is 20%.

Gambling losses remain deductible as a miscellaneous itemized deduction (not subject to the 2% limitation) to the extent of gambling winnings.
,br> The Act provides that all deductions for expenses incurred in carrying out wagering transactions, and not just gambling losses, are limited to the extent of gambling winnings.

For tax years beginning after December 31, 2017 and before January 1, 2026 all miscellaneous itemized deductions that were previously subject to a 2% AGI limitation are suspended.

Among the items included in this elimination are:
All unreimbursed employee business expenses;
Union dues
Brokerage fees
All expenses related to tax return preparation;
Appraisal fees for charitable contributions;
Investment expenses.

The IRS standard business mileage rate for 2018 is 54.5 cents a mile
.
The rate for medical expense and moving expense for certain military personnel deductions is 18 cents a mile.

For charitable volunteers the mileage rate is unchanged at 14 cents a mile.

In 2015, the standard mileage rates for the use of a car, van, pickup or panel truck is 57.5 cents per mile for business use, 23 cents a mile for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.

Beginning on January 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 53.5 cents per mile for business miles driven, 17 cents per mile driven for medical or moving purposes, 14 cents per mile driven in service of charitable organizations. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

In 2016, the standard mileage rates for the use of a car, van, pickup or panel truck is 54 cents per mile for business use, 19 cents a mile for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.

Section 179 limits are now locked-in by the Protecting Americans from Tax Hikes Act of 2015 which allows businesses to write-off up to $500,000 of qualified equipment each year.
If you elect to expense section 179 property, you must reduce the amount on which you figure your depreciation or amortization deduction (including any special depreciation allowance) by the section 179 expense deduction.
You may elect to deduct all or part of the cost of certain qualifying property in the year you place the asset in service as opposed to recovering the cost over the assets useful life(depreciation). This choice is called a Section 179 Election.
Any disallowed amount in the current year may be carried over to future years.
The 179 deduction is reportable on IRS Form 4562. You can elect to expense part or all (up to $500,000) of the cost of section 179 property that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.