Hello
A client is purchasing medical equipment for his medical center. The equipment will most likely be delivered in Nov or Dec of 2023.
When the equipment arrives at his office, would that qualify him for bonus depreciation?
My client met condition #1, #2 and #4. What I'm not clear about is the mention of "placed in service by the taxpayer within a specified time period". Does anyone know what the exact rule is?
A1: The depreciable property must meet four requirements to be qualified property. These requirements are (1) the depreciable property must be of a specified type; (2) the original use of the property must commence with the taxpayer or used depreciable property must meet the requirements of section 168(k)(2)(E)(ii); (3) the depreciable property must be placed in service by the taxpayer within a specified time period or must be planted or grafted by the taxpayer before a specified date; and (4) the depreciable property must be acquired by the taxpayer after September 27, 2017. For additional information about these requirements see Proposed Treas. Reg. § 1.168(k)-2(b)) and the About Form 4562 webpage.
