Bonus depreciation is back and better than ever. Now the IRS has issued a new ruling on this revived tax break. (IRS Revenue Procedure 2011-26)
Alert: The new IRS guidance provides certain options, including a downward election, plus coordination with other tax code sections.
In addition, the IRS has created an “escape hatch” for business vehicle owners who might face unfavorable tax results under the new rules.
Here’s the whole story: The new 2010 Tax Relief Act provides generous tax breaks for business owners who acquire qualified property. It authorizes the following:
- 100% bonus for qualified property placed in service between Sept. 9, 2010, through Dec. 31, 2011 (Dec. 31, 2012, for property with longer production periods, including certain aircraft and transportation property).
- 50% bonus depreciation for qualified property placed in service from Jan. 1, 2012, through Dec. 31, 2012.
The new IRS ru...(register to read more)