Tax Changes: Extension of 50% Bonus First Year Depreciation

The “Small Business Jobs Act of 2010”  includes a number of important tax provisions for business. If you are planning on making capital expenditures, be sure to talk to your accountant about the following:

Extension of 50% bonus first-year depreciation. Before the Small Business Jobs Act, Congress already allowed businesses to more rapidly deduct capital expenditures of most new tangible personal property placed in service in 2008 or 2009 by permitting the first- year write-off of 50% of the cost.

The Small Business Jobs Act extends the first-year 50% write-off to apply to qualifying property placed in service in 2010 (as well as 2011 for certain aircraft and long production period property. ( This information provided by: © 2010 Thomson Reuters/RIA. All rights reserved.)

If you have questions about how this might apply to your business, please feel free to give us a call!