2010 Depreciation Bonus

2010 Depreciation Bonus

Did you know?
On September 27, 2010 President Obama signed the Small Business Jobs Act (SBJA).

In addition to providing incentives for small business, the SBJA extended the depreciation bonus (2010 only) and raised Sec. 179 expensing limits through the end of 2011 to encourage equipment purchasing. The economic stimulus law can potentially mean big tax savings for you. Check with a tax expert to see if your business is eligible to take advantage.

Depreciation Bonus At A Glance

  • The Small Business Jobs Act (H.R. 5297) reinstated the 50% depreciation bonus for 2010
  • Depreciation bonus helps businesses that cut their tax bill buy new equipment.
  • Applies, among other things, to purchases of tangible personal property (including construction, mining, forestry, and agricultural equipment) with a MACRS recovery period of 20 years or less.
  • Equipment must have been purchased and placed in service in 2010.
  • Applies to new equipment only.
  • Allowed for both regular and alternative minimum tax purposes.
  • Discretionary – Taxpayer need not claim the depreciation bonus.
  • Depreciation Bonus will expire at the end of 2010.

Sec. 179 Expensing At A Glance

  • The Small Business Jobs Act increased Sec. 179 expensing levels to $500,000 for 2010 and 2011.
  • The phase-out threshold amount is $2 million.
  • New and used equipment is eligible for expensing.
  • Can be combined with depreciation bonus.

For additional information please download the Depreciation Bonus Flyer.

Disclaimer: Nothing in this advertisement constitutes any kind of tax advice, a promise of potential tax savings or reduced tax liability reference the Small Business Jobs Act or any other rule, law or regulation. Applicability, if any, depends on your situation. For tax advice please consult a taxation expert.