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Bonus depreciation extension 2013
It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.Most types of tangible property (except, land), such as buildings, machinery, vehicles, furniture, and equipment are depreciable. A taxpayer must use bonus depreciation extension 2013 property in business or in an income-producing activity.
Bonus depreciation is a valuable extenion tool for businesses. It allows your business to take an immediate first-year deduction of 50% deduction on the purchase of eligible business property.First, a brieCLIENT ALERT: Bonus Depreciation Extended Another YearJanuary 1, 2013By: Troy A. You can take a special depreciation allowance to recover part of the cost of qualified property (defined next), placed inservice during the tax year.
The allowance applies only for the first year you place the property in service. For qualifiedproperty placed in service deprecation 201, you can take an additional 50% special allowance. Businesses are allowed to deduct 50% of their equipment cost up front in 2015, 201, and 2017. It will drop to 40% in 2018 and 30% in 2019. But businesses should still properly prepare for this phase out.