Good news for business!
The 2012 Taxpayer Relief Act extends 50% first-year bonus depreciation so that it applies to qualified property acquired and placed in service before Jan. 1, 2014 (before Jan. 1, 2015 for certain longer-lived and transportation property).
The 2012 Taxpayer Relief Act also retroactively revives and extends through 2013 the rule treating qualified leasehold improvement property as 15-year property. Thus, such property is eligible for a bonus 50% first-year depreciation deduction if placed in service before Jan. 1, 2014.
The 2012 Taxpayer Relief Act also extends through 2013 the rule treating qualified restaurant property as 15-year property and the rule treating qualified retail improvement property as 15-year property. These types of property also are eligible for 50% bonus first-year depreciation if they also meet the definition of qualified leasehold improvement property.
As yo will see from our continued writings on the new law, Congress has only extended most business tax provisions for one year. We anticipate a larger “business tax reform” bill around the middle of 2013.
If you have any questions regarding bonus depreciation or any other new law provisions, please do not hesitate to contact us.