Bonus Depreciation Update

Bonus Depreciation Update

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Author: Scott Zickefoose | Tax Supervisor

On July 11, 2014, the House of Representatives passed HR4718, a measure to permanently extend bonus depreciation.   The advantageous depreciation, worth 50% of the qualified purchase, expired on December 31, 2013.  This, paired with the significant decrease in Section 179 depreciation, painted a grim picture for taxpayers who are accustomed to large depreciation deductions. This bill has not been voted on by the Senate.  Many commentators are pessimistic about this particular bill’s fate due to the permanent nature of the extension.  We believe HR4718 is a good first step for our lawmakers and hope to see continued activity surrounding this tax issue.   We expect to see more clarification on this subject once the mid-term elections have passed in November.   Keiter will continue to monitor any updates surrounding Section 179 and bonus depreciation.

Please contact your Keiter professional if you have any questions about how this could impact your business.
804.747.0000 | information@keitercpa.com

 Source: AccountingWeb | Image: Getty Images

 


The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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