More Tax Cut Confusion
The $1.5 trillion tax cut that sped through Congress late last year is still being interpreted by lawyers and accountants, and among the ambiguities and errors that need to be addressed is the all-important tax depreciation period for capital improvements and purchases. In what is assumed to be a drafting error, the legislation—far from allowing the immediate write-off of such investments—fails to allow a 15-year depreciation period sought by the National Restaurant Association and others.
Cicely Simpson, the NRA’s Executive V.P. of Public Affairs, told The New York Times, “It is our understanding it was an honest mistake. The bipartisan intent behind the law was a 15-year depreciation period and we are confident Congress will have this resolved quickly.”
“Quickly” will require bipartisan cooperation; legislation correcting any portion of the tax bill will require Democratic votes to get through the Senate. No Democrats voted for the original bill.