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Bonus first-year depreciation: An excerpt from BGD Magazine

Bingham Greenebaum Doll LLP recently released BGD Magazine, a quarterly collection of feature articles and stories. The first issue’s cover story, “The Fiscal Cliff in Depth for Business,” shows how the American Taxpayer Relief Act of 2012 affects businesses and their owners. Read below for an excerpt on bonus first-year depreciation.

Businesses are allowed a 50 percent depreciation deduction in the year that certain “qualified property” is placed in service. Qualified property generally includes most machinery and equipment, computer software and certain leasehold improvements. The American Taxpayer Relief Act of 2012 has extended the bonus depreciation deduction for such qualifying property that is placed in service in calendar year 2013.

Historically, capital property, including most business machinery and equipment, is depreciated over its useful life, which allows for a relatively small tax deduction for each tax year over the life of the property. However, with the extension of bonus depreciation, businesses will be able to take current deductions of one-half the cost of qualifying property placed in service in 2013.

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  • Partner

    Ross D. Cohen serves as Co-Leader of the Federal Tax Team and concentrates his practice on federal tax transactional and planning issues of partnerships, joint ventures, limited liability companies and S and C corporations.

    With ...



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