Latest news with #bonusdepreciation
Yahoo
12-07-2025
- Business
- Yahoo
New budget law includes property renovation incentives
This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. A handful of provisions in the 940-page domestic policy law enacted July 4 could spark a quick-turnaround on facility renovations, a tax specialist says. The law restores 100% bonus depreciation on capital expenditures for property renovations, giving building owners an incentive to undertake work immediately so they can write off the full cost of the project in the year the work is done, says David De Jong, a principal at law firm Stein Sperling. 'It's a great incentive,' said De Jong, chair of the firm's tax group. 'Everybody with few exceptions is looking for write-offs that take effect immediately.' The federal government has made 100% bonus depreciation available before but always on a temporary basis, most recently in 2017-2022. In 2023, it dropped to 80% and then in 2024 to 60%. It was slated to drop to 40% this year before the new law was signed. Only projects that renovate existing facilities, excluding work on the exterior of the building, qualify for the incentive, De Jong said. That means building operators can replace the HVAC system, install energy efficient lighting and upgrade the plumbing and electrical, as well as make other improvements to the interior of their facilities, in compliance with the depreciation rules. Renovating the roof or upgrading the building exterior wouldn't quality. Nor would adding an addition. 'If you're doing something new it doesn't qualify,' said De Jong. 'Enlargement or change in the external structure – those don't qualify. But changes in the fixtures, flooring – anything that would not constitute a change in the overall structure would qualify." There are other provisions that could help owners if they want to do exterior work or build something new, De Jong said. Section 179 of the tax code is a longstanding provision that gives owners a 100% deduction on the cost of certain assets. Because it's a 100% deduction, it's been an attractive option in the years bonus depreciation was capped at something lower than that. But there's a negative. Unlike with bonus depreciation, the amount of expenditure that can be dedicated is capped. This year it's $2.5 million under the new law. There's another limitation. Unlike with bonus depreciation, the deduction can't be used to generate or increase a tax loss, and it phases out for larger businesses – those that have more than $4 million in qualifying assets, De Jong said. These limits are of more interest to company accountants than to facility managers, but it's useful to know about them because they impact decision-making on whether to undertake a capital project and when. For building owners wanting to include exterior work in the renovation, the deduction can be attractive because it includes roofing as a qualified expenditure. 'As long as it's a needed replacement roof,' he said. To make it easier to show it's a replacement roof and not an upgrade, it's best to replace the roof with something of similar quality rather than with something that would be a step above, he said. There's also a provision in the law that creates a new Section 168(n) in the Tax Code that allows for 100% bonus depreciation of new additions, or portions of new additions, if they're intended for manufacturing or chemical or agricultural production. 'It doesn't apply to portions of the building that are, like, a lunchroom or an administrative area,' he said. 'It's just for portions that are used for qualified production activity.' Details about the new Section 168(n) will remain unknown until the IRS comes out with guidance, but based on the language in the law, property owners should find it an attractive addition to the broader bonus depreciation incentive and the Section 179 deduction. 'It's probably the most significant totally new provision that will benefit some owners,' De Jong said. Recommended Reading Loss of 179D deduction could derail office conversions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
07-07-2025
- Business
- Forbes
Forbes Daily: Big Week Ahead For Trump's Tariffs And Trade Deal Policy
There's one less-discussed group that's getting a boost from the GOP's One Big Beautiful Bill: private jet owners. The spending package permanently restores the 100% 'bonus depreciation' law, which permits businesses to write off the full amount of qualifying items the year they were purchased and was previously set to expire by 2027. And while bonus depreciation applies to a variety of physical items, its creation led to a boom in jet sales in the past decade. The Congressional Budget Office estimates that the permanent establishment of 100% bonus depreciation would cost taxpayers $378 billion over a decade. People look on as law enforcement and volunteers continue to search for missing people near Camp Mystic, the site of where at least 20 girls went missing after flash flooding in Hunt, Texas, on July 5, 2025. RONALDO SCHEMIDT/AFP via Getty Images Flash flooding in Central Texas killed at least 81 people over the July 4 weekend, including 28 children, and recovery and rescue efforts are ongoing. Blame is swirling over preparedness and whether residents were properly alerted, and the National Weather Service was one of several federal agencies targeted by DOGE's cost-cutting efforts. President Donald Trump's 90-day pause on his sweeping tariffs is set to expire Wednesday, he pledged to send letters to at least a dozen countries imposing rates as high as 70%, the latest in his administration's start-and-stop trade saga. Treasury Secretary Scott Bessent said there are likely to be a 'flurry' of deals made before this week's deadline, as Trump suggested countries would have to start paying their new tariff rates on August 1 'in pretty much all cases.' MORE : Trump on Sunday night denounced the BRICS bloc of nations as 'Anti-American' and warned that any country adopting its policies will face an additional 10% tariff, as the group of developing economies including Brazil, Russia, India, China, and South Africa held its annual summit. Trump didn't clarify if he intends to impose levies on all members of BRICS or if he has issues with any specific policies. Hiring topped economists' forecasts last month, a welcome sign for the labor market despite recession warnings. Still, the seemingly good news means investors could wait longer for relief from the Federal Reserve on interest rates, as the data 'completely dispels [the] case for imminent rate cuts' wrote Seema Shah, Principal Asset Management's chief global strategist. Despite the recent hype around stablecoins, Americans are highly unlikely to change how they pay for goods on a widespread basis. International payments are the clearest use case for stablecoins so far, according to one Stripe executive, and they are becoming popular among consumers in emerging markets in Latin America and Africa, but there are few incentives for those in developed countries to adopt them. WEALTH + ENTREPRENEURSHIP 'I don't live an expensive lifestyle. And my retirement is my business. We don't need [retirement funds] because we're not going to retire,' says Pat Neal. GUERIN BLASK FOR FORBES Homebuilding mogul Pat Neal has built a $1.2 billion fortune despite not owning any bonds or public stocks, largely thanks to his company Neal Communities, which has put up 25,000 houses in Florida. 'I like controlling my own future,' says Neal, who sells undeveloped home lots when he requires additional cash. Paylocity founder Steve Sarowitz suddenly shut down his charitable foundation in May amid the legal drama and threats surrounding the saga between actor Blake Lively, Sarowitz and his business partner Justin Baldoni, Lively's co-star in the film It Ends with Us. Though several media outlets blamed Wayfarer's shuttering in part on financial difficulties arising from the legal battle, that's not likely the case: While experts say the hefty legal, security and PR expenses could already total $40 million, Sarowitz still has an estimated $2.3 billion fortune. MONEY + POLITICS President Donald Trump signed his signature spending bill on the July 4 deadline he had set, as the legislation will slash federal Medicaid spending, extend Trump's tax cuts and phase out the wind and solar tax credit, among other changes. The bill will impact millions of Americans and businesses, whether it's a new, temporary deduction for seniors, an increased child tax credit or a higher SALT (State and Local Tax) cap. It's slated to increase federal deficits over the next 10 years by nearly $3.3 trillion, per the nonpartisan Congressional Budget Office. TRAVEL + LIFESTYLE Izipizi's founders (from left): Xavier Aguera, Quentin Courtier and Charles Brun IZIPIZI The French founders of affordable luxury eyewear company Izipizi have grown their brand to one that generates nearly $60 million in annual revenue. But Izipizi has a different approach than competitor Warby Parker, focusing on brick-and-mortar stores rather than a direct-to-consumer strategy. Now, the company is eyeing a U.S. expansion, and looking to launch its first American retail location next year. TRENDS + EXPLAINERS Larger, wealthy universities—including some that have been targeted by the Trump Administration—will face a higher tax on their endowments' investment earnings as a result of President Donald Trump's budget and tax bill. But some smaller schools will get a tax break: Forbes identified at least 26 wealthy colleges that are likely subject to the endowment tax now, but will be exempt next year based on their size. DAILY COVER STORY This Secretive Company Built An Empire By Hawking Bad Financial And Health Advice To Seniors On Facebook ILLUSTRATION BY PHILIP SMITH FOR FORBES; FANATIC STUDIO/GETTY IMAGES In a roughly 57-minute video, a white-haired man in a checkered shirt is sitting in a blurred hallway. He speaks slowly: 'With Donald Trump taking the White House and RFK Jr. now positioned to dismantle the uniparty's corrupt FDA … multibillion dollar drug conglomerates, some of Big Pharma's oldest and most prominent, will be in a desperate race to flood our nation with poison.' The man urges 'seniors like you and me' to join the online 'Health Sciences Institute,' where they can learn about alleged 'remarkable medical breakthroughs' that the government and pharmaceutical companies 'have been intentionally hiding.' (The Institute's website contains a disclaimer stating that its content should not be interpreted as personal medical advice.) The man's video is one of many of longform advertisements produced by The Agora and its sprawling conglomerate of subsidiaries, which have spent decades cashing in on Americans' growing distrust in government, financial institutions and healthcare providers. The Agora makes its money by selling subscriptions to 'natural health' newsletters that are a vector for its wellness supplements business, as well as investment advice newsletters that can cost thousands of dollars a year. It says it is a '1.5bn+ company,' and its subsidiaries pour millions each month into advertising on Facebook and Instagram. But a Forbes investigation into hundreds of Agora-linked ads domains, and opaque social media accounts—and interviews with six people who have worked for Agora companies—reveal a company that has found success by misleading vulnerable people. WHY IT MATTERS Despite regulatory action from the FTC in recent years, The Agora seems to have done little to change its ways—and it's poised to continue its practices at a moment when Trump has gutted consumer protection enforcement, social media companies have taken their proverbial feet off the gas when it comes to taking down misleading messages, and mistrust in institutions is at an all-time high. As Bonnie Patten, executive director of the nonprofit consumer protection group Truth in Advertising, told Forbes , 'This is the perfect storm for a company like Agora to manipulate consumers in the U.S.' MORE AI Generated Pro-Iran Propaganda Is Flooding TikTok, Instagram And YouTube FACTS + COMMENTS Teenage drivers are on their phone more than one-fifth of the time they're behind the wheel, a new study shows, though most respondents said they understand the risk. The most common reasons were to be entertained, text or follow a map: 21%: The average percentage of each drive that teens said they spend on their phones, the survey found More than a quarter: The share of those instances that lasted two seconds or longer, which is shown to significantly increase the risk of a crash or near crash 235: The number of people killed in crashes involving distracted drivers between the ages of 15 and 19 in 2022, according to the Children's Hospital of Philadelphia's Teen Driver Source STRATEGY + SUCCESS The One Big Beautiful Bill will transform taxes for millions of Americans: The legislation provides an exemption of $25,000 of tip income for certain professions, an additional $6,000 deduction for taxpayers ages 65 and older, and an increase in the cap on state and local tax deductions to $40,000. Plus, the federal estate tax exemption will increase to $15 million. VIDEO Centibillionaire and Tesla CEO Elon Musk informally announced a new political party Saturday, after breaking with Republicans and former ally President Donald Trump over their tax megabill. What is the name of the party? A. xParty B. DOGE Party C. Never Trump Party D. America Party Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff
Forbes
03-07-2025
- Business
- Forbes
How Trump's Spending Bill Helps The Rich Buy Their Private Jets
A little-discussed portion of the billionaire President Donald Trump's 'Big Beautiful Bill" hands a lucrative break to ultrawealthy Americans in the form of a tax policy for private jet purchases. An under-the-radar provision of Trump's spending bill lands a massive potential tax advantage for ... More the ultrawealthy as part of a provision which would cost an estimated $378 billion. Patrick McMullan via Getty Images Part of the spending package that just passed the Senate is the permanent restoration of the 100% 'bonus depreciation' federal law, which allows businesses to write off the full amount of qualifying items in the year of purchase. Bonus depreciation was originally a part of the Tax Cuts and Jobs Act of 2017, but phased down from the 100% level beginning in 2023 and was set to permanently expire by 2027, according to Thomson Reuters. The bonus depreciation policy applies to a slew of qualified, physical business expenses which depreciate over time, such as machinery and company cars, but the policy is often associated with big-ticket luxury items, such as private aircraft, and its institution last decade led to a boom in jet sales. That means that unlike standard business accounting procedures in which capital investments are spread across multiple years and are never fully written off, the full value of qualified property could be written off year one. A $10 million plane could now be a $10 million deduction in that same year, noted the aviation industry publication Flying magazine. 'For someone interested in buying a jet, whether new or used, this is a very big deal,' Matthew Bere, managing director of aviation at the Oklahoma-based bank BOK Financial, said this week, saying he expects the megabill's passage to 'spur a lot of activity in aircraft sales.' This is an 'example of oligarch friendly rules,' says Chuck Collins, director of the Program on Inequality and the Common Good at the Institute for Policy Studies progressive think tank. Collins described the bonus depreciation provision as a 'massive tax break for billionaires and centi-millionaires' from the 'private jet lobby' in a Tuesday post. Big Number $378 billion. That's how much the permanent establishment of 100% bonus depreciation would cost taxpayers over 10 years, according to Congressional Budget Office estimates. 'The all-at-once tax deduction could potentially reduce' jet buyers' taxable income by 'millions of dollars in a given year,' explained Bere. How The Senate Made This Deduction Permanent The version of Trump's 'Big Beautiful Bill' passed by the House in May only extended the 100% bonus depreciation through 2029, while the Senate made the deduction permanent. The private aviation industry celebrated the change, and charter plane provider FlyUSA described the legislation as 'a power-packed provision that could change the game for private aircraft acquisition.' Key Background The private jet friendly bonus depreciation provision adds to heavy criticism from Democrats and nonpartisan watchdogs who say the bill will disproportionately help the rich and hurt the poor. The bill will lower the lowest 20% of American earners' incomes by 2.9% while the top 1% of earners will get a 1.9% boost, according to the Yale University Budget Lab. 'This bill gives another tax break to the ultrawealthy — so they can buy another private jet,' Sen. Mark Kelly, D-Ariz., said this week. Environmental groups frequently criticize private jet usage for its outsized emission, and U.S. departures account for 65% of private jet flights globally, according to the International Council on Clean Transportation. Kyle Khan-Mullins and Lily Ogburn contributed reporting. Further Reading Forbes Senate Passes One Big Beautiful Bill Despite One Big Not-So-Beautiful Price Tag By Kelly Phillips Erb Forbes How Trump's Spending Bill Impacts Student Loans—Including Higher Payments And More Restrictions By Alison Durkee
Yahoo
26-06-2025
- Business
- Yahoo
Wolfe Research Upgrades Charter Communications (CHTR) on Potential Tax Benefit
Charter Communications, Inc. (NASDAQ:CHTR) is one of the 11 best performing Warren Buffett stocks in 2025. On June 20, Wolfe Research raised the company's stock from an 'Underperform' rating to a 'Peer Perform' rating. According to the analysts, the key reason for the upgrade is the potential financial benefits for Charter from the anticipated reinstatement of 100% bonus depreciation. A broadband satellite hovering in the sky, highlighting the company's satellite-based broadband communication solutions. In 2017, the Tax Cuts and Jobs Act introduced 100% bonus depreciation. This move allowed companies to deduct the full cost of certain capital expenditures immediately. But this provision began phasing out in 2023. In 2025, the House passed the 'One Big Beautiful Bill', aiming to reinstate full bonus depreciation through 2029 (2030 for some assets). The bill seeks to stimulate capital investment and reduce near-term tax burdens for infrastructure-heavy firms like Charter. Charter stands out as a prime beneficiary with its $93.6 billion debt load and capital-intensive broadband infrastructure. Wolfe Research's analysts highlighted that the company could see $1.8 billion in tax savings in 2025 alone. This is a 30% free cash flow (FCF) boost, potentially doubling FCF per share by 2027. Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company. It provides internet, video, voice, and mobile services to over 32 million customers across 41 US states. Its leading brand is Spectrum, which offers high-speed internet, cable TV, home phone, and mobile services to both residential and business clients. While we acknowledge the potential of CHTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-06-2025
- Automotive
- Bloomberg
How Scout Motors Sees the Future of EVs
The Senate draft of President Trump's tax bill provides 100% bonus depreciation on plant and equipment, domestic R&D expensing, and will allow the deduction of interest on loans for vehicles assembled here in these United States. But will those incentives outweigh the elimination of EV tax credits and the threat of section 899, the so-called revenge tax on foreigners, so important to an EV-maker like Scout Motors, which is owned by Germany's Volkswagen? Scott Keogh, Scout Motors President & CEO joined Bloomberg Open Interest to discuss the implications and the road ahead for EVs. (Source: Bloomberg)
