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Tag >> depreciation
Dec 14

Bonus depreciation no bonus, says one expert

Posted by Stephen Taub in TaxdepreciationCredit suisseCashcapital expenditurescapital equipment outlayscapexbonus depreciation

Stephen Taub

While much of the focus of the pending tax cut package seems to be on the reductions and breaks for individuals, there are some goodies tucked in for corporations as well.

They include a two-year extension of the research and development credit, which covers employment costs of employees involved in research, and $22 billion for accelerated depreciation, which allows companies to write off all of their costs of assets placed in service after September 8, 2010 and through December 31, 2011, in one year. This will be followed by 50 percent bonus depreciation for assets purchased during 2012.

Jul 27

Proposed legislation would extend 15-year depreciation

Posted by Karen1 in leasingdepreciationCongress


While it hasn't received much attention, a bill introduced by Senator Kent Conrad (D-ND) in June could help many companies come tax time. The bill, S.3510, would permanently extend the 15-year recovery period for qualified leasehold improvement property, as well as qualified restaurant and retail properties. The bill has seven co-sponsors, including five Republicans. It mirrors a bill introduced in the House (H.R. 4306) in late December, by Rep. Kendrick Meek, a Democrat from Florida. MeekÕs bill attracted 45 co-sponsors, also from both sides of the aisle.

Prior to 2004, most buildings and building improvements followed a 39-year depreciation schedule, says George Manousos, a partner in the Washington office of Pricewaterhouse Coopers. That changed with the passage of the American Jobs Creation Act of 2004, which permitted a 15-year depreciation schedule. Businesspeople had argued that because of wear and tear and changing trends, these improvements didn't last anywhere near 39 years. In addition, the accelerated schedule boosted companies's depreciation expense, which is non-cash, reducing their taxable income.

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