Bonus depreciation

Under the recently passed 2010 Tax Relief Act, qualified assets that are purchased after September 8, 2010 and before January 1, 2012 are eligible for 100% bonus first year depreciation; this depreciation can be taken regardless of taxable income or loss.  Bonus depreciation will revert back to 50% deduction for assets placed in service during the tax year 2012.  Please keep in mind that the assets purchased must be new, and original use must begin with the taxpayer in order to qualify for bonus depreciation.

For more information on rules governing 100% first year bonus depreciation, please refer to the following article:

http://www.martindale.com/taxation-law/article_Barnes-Thornburg-LLP_1222768.htm