Business owners and real estate owners may claim the following three generous deductions for 2013 on Form 4562, Depreciation and Amortization.
- A business can claim a maximum of $500,000 with a phaseout threshold of $2 million. The deduction is claimed in Part I, Election to Expense Certain Property Under .
- A real estate owner can write off up to $250,000 of qualified real property, including qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property.
- A business can deduct 50% bonus depreciation for qualified new (not used) property placed in service in 2013. The deduction is claimed in Part II, Special Depreciation Allowance and Other Depreciation.
Tip: These tax breaks have not yet been extended beyond 2013.