1st Year Bonus Depreciation Increases to 100% & Section 179 Expensing Increases to $500,000
By Paul Ryan
4th May 2011
First Year Bonus Depreciation Increased to 100% for Equipment Placed Into Service Between September 8, 2010 through December 31, 2011
As part of The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, an extension of the small business act of 2010’s bonus depreciation allowance has been included that allows an increase from 50% to 100% bonus depreciation for investments like EQUIPMENT placed into service after Sept. 8, 2010 through Dec. 31, 2011! For bonus depreciation, equipment must be new and put to use in the U.S.
Enhanced Code Section 179 Expensing Increased to $500,000 through 2010 and 2011
The Small Business Lending Fund Act signed into law on September 27, 2010, contains numerous tax provisions. The act increases the section 179 expense deductions to $500,000 from $250,000 for both 2010 & 2011!
Section 179 expensing: The increase in the Section 179 expensing amount to $500,000 and the increase in the phase-out threshold to $2,000,000 are both extended for 2010 and 2011.
DISCLAIMER: MAAC Machinery is not licensed to provide accounting or legal advice. Please consult your own CPA or Counsel for any accounting or legal advice and as to how this new bill can help your company.
