Jan 18th, 12
Here's some quick news and developments on Small Business Expensing - Section 179, Bonus Depreciation, and Mileage Rates!
Code
Section 179 allows certain businesses to deduct the full purchase price of new
and used equipment that qualifies for the deduction that is placed into service
during the tax year. For 2011, the deduction limitation was $500,000, for
companies who purchased equipment not exceeding $2,000,000. For 2012, the
limitation is reduced to $139,000, for companies who purchased equipment not to
exceed $560,000. Beginning in 2012, the Section 179 deduction is also available
for off-the-shelf computer software. Bonus
depreciation for qualified new purchases made during 2011 of 100% is available
to many businesses, including those spending more than $2,000,000 on new
equipment. Bonus depreciation returns to 50% for 2012. Special
rules apply to luxury vehicles used by a business. In
2011, the IRS made a mid-year adjustment to business standard mileage rate,
increasing from 51 cents-per-mile to 55.5 cents-per-mile for business miles
driven on or after July 1, 2011 and on or before December 31, 2011. Taxpayers
are not permitted to average the two rates for 2011. The 2011 mid-year
adjustment requires taxpayers to maintain two records of miles driven in 2011
(one for the first six months of 2011 and another for the second half of 2011). In
2012, the business standard mileage rate remains unchanged at 55.5 cents per
mile.Small Business Expensing
– Section 179
Bonus Depreciation
Mileage Rates