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Bonus Depreciation

The American Taxpayer Relief Act extends 50 percent bonus depreciation through 2013. Some transportation and longer period production property is eligible for 50 percent bonus depreciation through 2014.

$700,000 machine
$500,000 Sec. 179 expense
$100,000 first year Bonus depreciation (50% of the remaining $200,000 after Sec. 179 expense)
$600,000 potential first year write off
$210,000 potential first year tax savings based on a 21% tax bracket


Consult with your tax advisor about this information.