Thursday, February 4, 2010

The Feds Give and The States Takes Away

The 50% first year bonus depreciation and increased Section 179 deductions were extended through 2009 by the American Recovery and Reinvestment Act of 2009. Basically, and subject to certain rules and limitations, for 2009, businesses can expense up to $250,000 of qualifying assets, and then claim 50% first-year bonus depreciation and regular depreciation on the remaining cost. Pretty good deal, huh!

Maybe, maybe not. You need to check with your state before making your decision to take that extra depreciation because some states have special rules that are not as special as some taxpayers had hoped. Some states are disallowing the bonus depreciation and the increased Section 170 deduction so check before you elect to take that extra deduction.

No comments:

Post a Comment