Impact on Depreciation with American Taxpayer Relief Act

The American Taxpayer Relief Act of 2012 was finally passed by Congress and signed into law last week.  The business tax provisions contained in the bill are as follows:

  • 50% Bonus Depreciation has been extended through December 31, 2013
  • 50% Bonus Depreciation has been extended through December 31, 2014 for certain long production period and transportation assets
  • The 15 year recovery period has been extended from January 1, 2012 through December 31, 2013 for qualified:

Leasehold Improvement Property
Retail Improvement Property
Restaurant Property

  • Section 179 Expensing Election:

The maximum annual expense deduction for 2012 and 2013 has been increased to $500,000

The maximum annual investment limit for 2012 and 2013 has been increased to $2,000,000

For more information CCH has put together a Tax Briefing that covers the entirety of the American Taxpayer Relief Act of 2012 and is located at http://tax.cchgroup.com/downloads/files/pdfs/legislation/ATPR.pdf

Questions or comments about this post? We invite you to respond in the space below.

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.

Form 4562 – Depreciation and Amortization

Today’s post is about IRS Form 4562 and is a companion piece to an earlier post: IRS Form 4562: Information and Instructions

The purpose of Form 4562 is to allow a business to claim a deduction for depreciation and amortization. This form is also used to expense certain property under Section 179 and list any automobiles or listed property with business or investment use.

The summary form consists of six sections over two pages. A stand-alone fixed asset software package like Bassets eDepreciation can produce all the detail necessary for the supporting schedules and summarize the totals for summary form. Here is an overview of information required on Form 4562:

 

 

Summary Form

  • Page 1
    • Part I – Election to Expense Certain Tangible Property (Section 179)
    • Part II – Special Depreciation Allowance and Other Depreciation
    • Part III – MACRS Depreciation Allowance for Assets Placed in Service During the Current Tax Year
    • Part IV – Summary
  • Page 2
    • Part V – Listed Property
    • Part VI – Amortization

Schedules

  • Part I – Election to Expense Certain Tangible Property (Section 179)
  • Part III – MACRS Depreciation for Asset Placed in Service During Current Tax Year
  • Part V – Listed Property
  • Part VI – Amortization allows deduct part of certain capital costs over a fixed period

 

For more information, visit the following links at the IRS web site.

Detailed Instructions: http://www.irs.gov/pub/irs-pdf/i4562.pdf

Form 4562: http://www.irs.gov/pub/irs-pdf/f4562.pdf

 

Questions or comments about this post? We invite you to respond in the space below.

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.