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Philadelphia Will Follow Pennsylvania Bonus Depreciation Treatment

The City of Philadelphia has announced that it will follow Pennsylvania’s income tax treatment of the federal bonus depreciation deduction for corporate taxpayers.

Taxpayers will need to add-back any federal bonus depreciation.  Taxpayers can take a deduction for any property placed in service after 9/27/17 equal to the federal depreciation. This deduction is allowed until the full amount allowed under IRS Sec. 168(k) is claimed.  In the year the property is sold or disposed of, an additional deduction, equal to any remaining amount of federal bonus depreciation that has not been recovered will be allowed.

August 29, 2018