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.