Updated September 7, 2010:
New York Times reports that President Obama will
announce a proposal that businesses will be allowed to
deduct 100% of new equipment purchase, including business
aircraft, effective September 8, 2010.
This bill will be a tremendous incentive for new aircraft
sales and it will have immediate impact for taxpayers that
can utilize additional tax deductions for both 2010 and
2011.
Here is a link to a site that has the contact information
for every Representative and Senator in Congress:
http://www.usa.gov/Contact/Elected.shtml
_________________
Updated August 26, 2010:
Congress is on recess and will reconvene after Labor Day.
The Senate is scheduled to vote on a "jobs bill" when it
returns in September. It is unclear if bonus
depreciation will be introduced as an amendment to the jobs
bill.
_________________
50%
BONUS DEPRECIATION for 2010
Section 179 Expensing Increase to $500,000
Updated
June 30, 2010:
Senate Finance Committee Chairman Max Baucus (D-Mont.) and
Senate Committee on Small Business and Entrepreneurship
Chair Mary Landrieu (D-La.) today released the Small
Business Jobs Act, a bill to help small businesses access
capital, stimulate investment in small businesses and
promote entrepreneurship – all of which will help small
business create jobs.
Provisions to Stimulate Investment
Increase of Section 179 Expensing and
Expansion to Certain Real Property.
Under current law, taxpayers may elect to
write-off the costs of certain tangible personal property
that is purchased for use in the active conduct of a trade
or business in the year of acquisition in lieu of recovering
these costs over time through depreciation. For the taxable
year beginning in 2010, taxpayers may write-off up to
$250,000 of these capital expenditures subject to a
phase-out once these capital expenditures exceed $800,000.
After 2010, the thresholds revert to $25,000 and $200,000,
respectively. This
bill would increase the thresholds to $500,000 and
$2,000,000 for the taxable years beginning in 2010 and 2011.
Within those thresholds, this bill would allow taxpayers to
expense up to $250,000 of the cost of qualified leasehold
improvement property, qualified restaurant property, and
qualified retail improvement property.
This provision is
estimated to cost $2.2 billion over ten years.
Extension of Bonus Depreciation
.
Businesses are allowed to recover the cost of capital
expenditures over time according to a depreciation schedule.
Congress temporarily allowed businesses to recover the costs
of certain capital expenditures made in 2008 and 2009 more
quickly than under ordinary depreciation schedules by
permitting those businesses to immediately write-off 50
percent of the cost of depreciable property placed in
service in those years.
This bill extends
the additional, first-year 50 percent depreciation for
qualifying property purchased and placed in service in 2010.
This
provision is estimated to cost $5.5 billion over ten years.
