Certain favorable capital investment provisions decline after year-end

While not completely expiring at year-end, there are a couple of economic stimulus provisions which become less attractive after December 31, 2011 – 100% bonus depreciation and Section 179 expensing.

100% bonus depreciation, which has been in place since late 2010, reverts back to 50% bonus depreciation for 2012. Note that bonus depreciation eligibility applies to new equipment only, and the equipment must actually be placed in service by year-end to be eligible. 50% bonus depreciation is scheduled to expire December 31, 2012.

For 2011, the dollar limit on Section 179 expensing is $500,000, with a cap of $2,000,000 in eligible purchases. For 2012, Section 179 expensing is limited to $125,000, with a cap of $500,000 in eligible expenditures.

About jgrahamcpa

CPA. Record label owner (Two Sheds Music). Music/sports junkie. Lebanese food enthusiast. Unhinged Braves / Crimson Tide fan.
This entry was posted in Capital investment, Taxes. Bookmark the permalink.

One Response to Certain favorable capital investment provisions decline after year-end

  1. Greetings! Very helpful advice on this article! It is the little changes that make the biggest changes. Thanks a lot for sharing!

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