Current tax law offers bonus depreciation as incentive to business owners who buy fixed assets. One of the main business incentives in the Tax Relief Act is the provision of 100 percent bonus depreciation for qualified property. The assumption inherent in the Act is that increased business spending will contribute to economic recovery and create jobs. How might this provision benefit your company this year?
Business owners recognize that they need to plan for the replacement of some fixed assets from time to time, things like vehicles, equipment, machinery, computers, desks, fixtures and similar goods. Purchases made this year could significantly reduce the taxable income of your business. Understanding how to best use depreciation of assets will result in better financial management of your business.
Click here to read the complete article on bonus depreciation at the Capital Region Business Journal online.