As the year of 2009 comes to an end, we would like to remind you that so too do many opportunities to take advantage of extended bonus depreciation allowances. Recall that under the 2008 Economic Stimulus Act, allowable bonus depreciation was increased to the amount of 50%. This allowance was again extended through the end of this year (2009) by the passage of the American Recovery and Reinvestment Act (ARRA). In case you have yet to take advantage of this but would still like to, below is the information you need to know from the ARRA of 2009. Still, the ARRA of 2009 was not the only notable legislation related to bonus depreciation passed this year. So, if you are asking what other amendments or new stipulations were passed, that you still have time to take advantage of, we have them listed right here below with a link to more information.
American Recovery and Reinvestment Act of 2009
1 Extends until 12/31/2009, the 50% Bonus Depreciation allowed under the 2008 Economic Stimulus Act
2. The Placed In Service data is extended to 12/31/2010 for property with a 10 year or longer recovery period, for transportation property (personal, used to transport people or goods) and for certain aircraft and,
- Is subject to Uniform Capitalization Rules
- Has a production period exceeding 1 year and a cost exceeding $1 million dollars
3. The Luxury Auto cap on new vehicles placed in service in 2009. The regular first year cap of $2,960 for automobiles is raised to $10,960, if bonus depreciation is elected. $11,160 for light trucks and vans.
4. For a Section 179 Expense Deduction there is a maximum deduction amount of $250,000 and a maximum Investment Limit of $800,000.
5. Refundable AMT and R&D credits in lieu of Bonus Depreciation
Qualified Disaster Assistance Property (Provision of the Emergency Economic Stabilization Act of 2008)
Kansas Disaster Area (Qualified Recovery Assistance Property) – Placed in service date of 12/31/2009 Only for Section 1250 Property
The time to take advantage of the increased allowable bonus depreciation is now. So, if you have any questions, or would like more information on bonus depreciation, please feel free to ask us in the comments of questions section. Also, check out this post on bonus depreciation in Wichita to see how it is designed to help industries rebound. We certainly hope it does.
More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.