For tax years beginning on or after January 1, 2021, Iowa conforms to the federal treatment of bonus depreciation under I.R.C. § 168(k). However, for tax years before this date, Iowa required an addition modification for any bonus depreciation taken federally, as it did not conform to bonus depreciation rules. This change, implemented by 2021 Iowa S.F. 619, streamlines tax reporting for property placed in service in recent years, aligning state and federal tax treatments.
Apartment ComplexIn Service 2022
A Apartment Complex purchased for $3,200,000 in Iowa
Purchase Price
$3,200,000
Land Value
$712,668
22.3% of total
Year In Service
2022
Tax Savings
$472,091
14.8% of purchase
Savings Impact14.8%
