Best Practices in Fixed Asset Management:
A Resource Guide for Claiming Bonus Depreciation
Bonus depreciation was brought back by the Economic Stimulus Act of 2008. It is important to note that it was not extended by the 2008 Act but rather the provision for bonus depreciation was allowed to expire and then it was reintroduced. It was not made retroactive. Since then it has been extended under four additional acts: the American Recovery and Reinvestment Act of 2009; the Small Business Jobs Act of 2010; the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010; and most recently the American Taxpayer Relief Act of 2012 (ATRA). This means that bonus depreciation is now available for qualifying assets placed in service through 2013 (with certain aircraft and property having a longer production period through 2014).
One item of note is that the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 temporarily increased, to 100%, the bonus depreciation deduction for fixed assets placed in service after September 8, 2010, through 2011 (through 2012 for certain aircraft and long-production-period property).
This Resource Guide will answer all of your questions about this bonus depreciation deduction including:
- What property qualifies for either the 50% or the 100% bonus depreciation deduction?
- What basis do I use to calculate the deduction?
- How does the new deduction affect the AMT depreciation adjustment?
- Can I choose which fixed assets I want to claim it on?
- How is the 40% test for the mid-quarter convention affected by it?
Download your copy today for guidelines about claiming bonus depreciation.
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