Do You Know How to Calculate Section 179, Bonus Depreciation, and MACRS Under the Small Business Jobs Act of 2010?

William Brighenti and Carole Romatis, Accountants CPA Hartford, LLCDo You Know How to Calculate Section 179, Bonus Depreciation, and MACRS Under the Small Business Jobs Act of 2010?

by William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

The Small Business Jobs Act of 2010 has increased and extended two very important provisions of the tax code dealing with depreciation of purchases of business assets.  The Section 179 limitation has been increased to $500,000 for the years 2010 and 2011.  It was scheduled to decrease to merely $25,000 in 2011.

In addition, the phase-out threshold of the deduction has been increased to $2,000,000 of annual purchases of qualifying business assets.

Moreover, 50% bonus depreciation has been allowed for the year 2010.  Its allowance had expired at the end of 2009.

For more information, please see the article, How to Calculate the Section 179 Deduction, Bonus Depreciation, and MACRS Depreciation Under the Small Business Jobs Act of 2010.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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