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Connecticut's Response to the Tax Cuts and Jobs Act of 2017 (Part II)

Tax Stringer

March 1, 2019

Louis Schatz authored the article Connecticut’s Response to the Tax Cuts and Jobs Act of 2017(Part II) for the New York State Society of Certified Public Accountants online tax publication, Tax Stringer. An excerpt from the article is provided below.

This article is the second in a two-part series about Connecticut’s Response to the Tax Cuts and Jobs Act of 2017 (the “New Federal Tax Act”). To read the first part published in the February 2019 TaxStringer, which summarized the provisions of Connecticut’s new pass-through entity tax, please click here. This second part of the series summarizes the remaining significant provisions of the new Connecticut legislation that was adopted in response to the New Federal Tax Act.

Federal Bonus Depreciation Decoupled.

The adoption of 100% bonus depreciation was one of the signature provisions of the New Federal Tax Act. However, the benefit of bonus depreciation in Connecticut has been muted. For Connecticut tax purposes, an individual subject to the Connecticut personal income tax is required to “add back” any additional allowance for federal bonus depreciation for property placed in service after September 27, 2017, when calculating Connecticut adjusted gross income.[1] However, 25% of the disallowed deduction may be deducted by the taxpayer on his or her Connecticut return for each of the four succeeding taxable years. To read the complete article, click here.

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