Bonus Depreciation

[Super Mom]

Ok, I've Used Section 179 For Years, But My Tax Software Is Figuring 100% Bonus Depreciation On All New General Purpose Equipment Purchased In 2011 New. And It Is Increasing The Loss With That. Is That Right?

[KBTS]

See TTB page 9-17 for a comparison chart of the 100% special depreciation for 2011.

[AJsTax]

Yes,

Bonus depreciation is automatic on new equipment unless you opt out of it. You can opt for 50% instead of 100% or opt out entirely. the options must be done for all assets in a class.
there are lots of reasons to play with bonus depreciation and sect 179 depending upon the desired results. Bonus depreciation can create a loss in the current year, where Sect 179 expense will only reduce icome to 0 with excess carried over.

[Super Mom]

Thanks!! Helps me to sleep at night to have 2nd opinions!!!!

[DMICPA]

Section 179

I was Consdering the same issues.

I was looking at my PPC 1040 Deskbook and in the 179 section, they said that taking section 179, you must be specific about what qualifying assets were purchased. They said "genaric descriptions" such as "Office Equipment" are not sufficient. I have been listing things like that for years and no problems but if I can get the 100% bonus depreciation without the detailed listing, that is what I will do. I also don't see any recapture with the bonus depreciation.

[dan doshan]

I was Consdering the same issues.

I was looking at my PPC 1040 Deskbook and in the 179 section, they said that taking section 179, you must be specific about what qualifying assets were purchased. They said "genaric descriptions" such as "Office Equipment" are not sufficient. I have been listing things like that for years and no problems but if I can get the 100% bonus depreciation without the detailed listing, that is what I will do. I also don't see any recapture with the bonus depreciation.

If you list things genericly, if a piece of office equipment or whatever is sold, how do you know which one it was if the depreciation schedule just shows say 5 different listings for office equipment. Why not specifically identify the item?