Bonus Depreciation Available for 2012
Legislation passed in late 2010 provides for the expensing of 50% of new property eligible for bonus depreciation – which includes trade show displays – placed in service before December 31, 2012.
This expensing (bonus depreciation) Federal tax Section 168, allows you to write off 50% of the full purchase amount this year on your Federal income tax return, as opposed to a percentage over multiple years. While the total amount of your tax savings will generally be the same, utilizing bonus depreciation gives you more working capital up front. That working capital can be used to reinvest in areas of your company that drive business – like marketing, lead generation, staffing and more. And keep in mind, Federal tax Section 179 allows you to elect to expense up to $139,000 of qualifying (100% off new or used equipment) purchases, as well.
No Limit to Bonus Depreciation!
You can depreciate the full amount of all qualifying purchases this year no matter their cost individually or in aggregate.
It’s Easier to ‘Expense’ Purchases
For many companies with a budget in place, requests for capital expenditures can be cumbersome and time consuming. By taking advantage of these tax opportunities, these items can be fully written off in 2012 and don’t need to be depreciated.
Consult Your Tax Advisor regarding this incentive. Refer to Sections 168 & 179 of the U.S. Internal Revenue Code.