On Dec. 17, 2010 the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRIA) was signed. In addition to providing incentives for small businesses, the TRIA extended the depreciation bonus for 2011 and 2012 and extended Sec. 179 through the end of 2012 to encourage equipment purchasing. Go to www.depreciationbonus.org for more details.
CURRENT 2011 Bonus Depreciation and Section 179 through December 31st, 2011
- Sec 179 deduction limit is $500,000 on purchases of new or used equipment put in service by Dec, 31 2011.
- Bonus Depreciation in 2011 allows businesses to write off 100% of the purchase price of NEW equipment put into service by Dec, 31 2011.
After January 1, 2012 Bonus Depreciation and Section 179 benefits will be reduced!!
- Sec 179 deduction limit will decrease to $120,000 on purchases of new or used equipment put in service in 2012.
- Bonus Depreciation will decrease to 50% for purchases of NEW equipment put into service in 2012.
By lowering your taxable income now, your business can dramatically cut its tax bill, freeing up cash to invest in other parts of your business.