Bonus Depreciation

外汇网2021-06-19 14:32:02 163

An additional amount of deductible depciation that is awarded above and beyond what would normally be available. Bonus depciation is always taken right away, in the first year that the depciable item is placed in service. This type of incentive is offered either as an additional incentive or as a measure of relief for small businesses that want to buy additional equipment.

The actual amount of bonus depciation varies from year to year, but it is offered on top of the maximum allowable Section 179 expensing limits and standard first-year depciation. Bonus depciation cannot be taken on property that is required to use the Alternative Depciation Schedule, but it is exempt from alternative minimum tax (AMT) adjustments. Bonus depciation is classified as a Section 1245 depciation deduction when disposing of an asset, and is subject to recapture as ordinary income.

Bonus Depreciation

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