This post will explain a couple more of the changes in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
In this post, I will focus on
- 100% bonus depreciation for September 8, 2010 through December 31, 2011
- 50% bonus depreciation for all of 2012
- The reduction in the employee portion of FICA for Old Age, Survivors, and Disability Insurance
- 100% of the cost of qualified property placed in service after September 8, 2010 and before January 1, 2012
- Why such a specific date such as September 8? Wonder what Congressperson/Senator has a constituent that bought a lot of assets on September 9…
- 50% of the cost of qualified property placed in service after December 31, 2011 and before January 1, 2013.
- It falls into one of the following categories:
- property with a recovery period of 20 years or less
- which includes most physical assets other than real estate
- computer software (generally, off-the-shelf software)
- qualified leasehold improvement property
- ITS ORIGINAL USE BEGINS WITH THE TAXPAYER (I.E., IT IS PURCHASED NEW)
Qualified leasehold improvement property does NOT include:
A lease between related persons (e.g., a lease between a taxpayer and his 80% owned business) does not qualify.
Bonus depreciation will not apply to qualified restaurant or qualified retail improvement property.
Any tax advice contained in the body of this post was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. Any information contained in this post does not fall under the guidelines of IRS Circular 230.