2010 Depreciation Provisions - Quick Reference Guide

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With the myriad of Tax Acts being implemented, I thought having a quick reference guide for 2010 depreciation provisions would be useful.  As they currently stand, below are the  Bonus and Section 179 depreciation laws for 2010 and beyond  –


Small Business Jobs and Credit Act of 2010

Bonus Depreciation

1.    50% first-year bonus depreciation extends through 12/31/10

2.     Also extends through 2011 the additional year of bonus depreciation allowed for property with a recovery period of 10 years or longer, and for transportation property.


Section 179 Depreciation

1.  Increases maximum deduction for qualified Section 179 property to $500,000 and the investment limit to $2,000,000 for tax years beginning in 2010 and 2011.

2.  Expands the definition of qualifying Section 179 property to include qualifying real property, particularly certain leasehold improvements, restaurant property and retail improvement property.


Tax Relief/Job Creation Act of 2010

Bonus Depreciation

1.  50% first year bonus depreciation is boosted to 100% for qualified investments made after September 8, 2010 and before January 1, 2012. 

2.  50% first year bonus depreciation is extended for qualified property placed in service after December 31, 2011 and before January 1, 2013. 


Section 179 Depreciation

1.  For tax years beginning in 2012, the Section 179 dollar limit is $125,000 and the investment limit is $500,000.



Please note that when you are applying these provisions, Section 179 must be taken first, then Bonus depreciation.  Also, Bonus depreciation is only applicable to new property not used. 


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