Valuing Bonus Depreciation Under the New Tax Law

BVResearch Pro
American Society of Appraisers Business Valuation Review™
Spring 2018 Volume 37, Issue 1 pp. 15-19
Joseph W. Thompson, CFA, ASA
David J. Neuzil, CFA
federal taxation
discounted cash flow (DCF), Tax Cuts and Jobs Act, bonus depreciation

Summary

The Tax Cuts and Jobs Act of 2017 (the Act) provides businesses the ability to deduct capital expenditures as “bonus depreciation” for purchases of qualified property. This article provides a framework for quantifying the value of bonus depreciation in the context of the discounted cash flow method.
Valuing Bonus Depreciation Under the New Tax Law
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