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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, or click here to download the full magazine.

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.

To learn more about Ross D. Cohen and his practice, visit his profile.

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This Disclosure may be required by Circular 230 issued by the Department of Treasury and the Internal Revenue Service. If this Web Site, including any attachments, contains any federal tax advice, such advice is not intended or written by the practitioner to be used, and it may not be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. Furthermore, any federal tax advice herein (including any attachment hereto) may not be used or referred to in promoting, marketing or recommending a transaction or arrangement to another party. Further information concerning this disclosure, and the reasons for such disclosure, may be obtained upon request.

  • Partner

    Ross D. Cohen serves as Co-Leader of the Federal Tax Team and concentrates his practice in the areas of tax and business law, focusing on federal tax transactional and planning issues of partnerships, joint ventures, limited ...

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