Question

g Under Bonus Depreciation, which was part of the tax reform act under Trump’s administration, Taxpayers are allowed to claim 100 percent of property acquired and placed into service after September 27, 2017 and before January 1, 2023. a. True b. False 5. Taxpayers generally want to take as much depreciation expense as possible in the earliest possible years due to the time value of money. a. True b. False

Answer 1

4 True

5 True

Step-by-step explanation:

4) TRUE

BecauseTrump Administration has allowed to claim 100 prevent of bonus depreciation for the property acquired and placed in service after sep 27 2017 to January 1 2023. It is allowed on business asset with a life of 20 years or less.

5) TRUE

BecauseTaking depreciation in earlier year keeps taxable income low and lower tax has to be paid in earlier years. Which save the interest cost.

Answer 2

Under Bonus Depreciation, which was part of the tax reform act under Trump’s administration, Taxpayers are allowed to claim 100 percent of property acquired and placed into service after September 27, 2017 and before January 1, 2023.

• a. True

Under the Tax Cuts and Jobs Act, bonus depreciation increased from 50% to 100% fro qualified property acquired between September 27, 2017, and before January 1, 2023.

Taxpayers generally want to take as much depreciation expense as possible in the earliest possible years due to the time value of money.

• b. False

The time value of money states that 1 dollar today is worth more than 1 dollar tomorrow, so 1 dollar saved today is worth more than 1 dollar saved tomorrow. That means that taxpayers will want to decrease their taxes as much as possible and as soon as possible.