New rapid write-off provisions for tangible and intangible assets
✍ Scribed by Caroline D. Strobel
- Book ID
- 102298891
- Publisher
- John Wiley and Sons
- Year
- 2002
- Tongue
- English
- Weight
- 40 KB
- Volume
- 13
- Category
- Article
- ISSN
- 1044-8136
No coin nor oath required. For personal study only.
✦ Synopsis
This column discusses a number of new and forthcoming changes affecting capitalization of costs and the rapid write-off for tax purposes of productive assets. These changes should significantly help corporations to increase cash flow while still making significant investments.
NEW DEPRECIATION LEGISLATION
The Job Creation and Worker Assistance Act of 2002 was signed into law on March 9, 2002. It allows taxpayers to claim additional depreciation deductions for new tangible personal property and software placed in service after September 10, 2001, and before September 11, 2004. A taxpayer will be able to claim a Section 179 deduction (if applicable) first, followed by a 30 percent depreciation deduction (based on original cost less any applicable Section 179 deduction), and, in addition, take the regular depreciation for that year based on the asset's reduced basis. More than half the cost of the asset may be deductible in the first year of service. The Section 179 and 30 percent depreciation