Nearing the Deadline for Taking Advantage of the Government's Bonus Depreciation Stimulus - 7/28/2009
Under the American Recovery and Reinvestment Act of 2009 (ARRA), equipment that qualifies to be depreciated under the Modified Accelerated Cost Recovery System (MACRS) with a recovery period of 20 years or less is eligible for a special bonus depreciation in 2009. This allows qualified buyers to take an additional deduction of 50% of the equipment's depreciable basis prior to calculation of the regular depreciation deduction.
Smaller companies making limited investments in 2009 will see an even greater cost reduction because they can first take advantage of the Section 179 "small business" expensing incentive prior to making the calculation above.
In both cases, the equipment must be purchased in 2009 and placed into service by
31 December 2009
. The time limit on this incentive is quickly running out. For companies that qualify, this tax break provides ideal opportunity to expand your analytical capabilities.