Auto and Truck Purchase Tax Bonus - Buy Now!
 Thanks Uncle Sam |
SEE ALSO:
- The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides 100 percent depreciation bonus for capital investments placed in service after September 8, 2010 through December 31, 2011. For equipment placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50 percent depreciation bonus.
- However, The Small Business Jobs Act of 2010, which contained 50 percent depreciation bonus, still applies to purchases made between January 1, 2010 through September 7, 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
- 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
- The new tax cut extension law also extends Sec. 179 expensing for taxable years beginning in 2012, at $125,000 and $500,000 respectively, indexed for inflation.
- New and used equipment is eligible for expensing
- Can be combined with depreciation bonus
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