Ref: Proposed Reg Sec 1.168(k)

In September 2019, the IRS issued proposed regulations for bonus depreciation under Section 168(k). Under the proposed regulation, a contract to acquire all or substantially all of the assets of a business will allow for bonus depreciation of those assets. Additionally, the presence of a condition outside of the control of the parties, including, for example, regulatory agency approval will not prevent the contract from being a binding contract.

Furthermore, the rule applies to the sale of stock of a corporation if that sale is treated as a deemed asset sale under Code Section 338.