2012 / 2013 Bonus Depreciation & Section 179 Summary [TABLE]

The 2010 Tax Relief Act signed in December 2010 provides that qualified property acquired and placed in service during calendar 2012 qualifies for 50% bonus depreciation. For qualified property acquired and placed in service in calendar 2011, the law allowed 100% bonus depreciation. Current law provides that the bonus depreciation provisions will expire on December 31, 2012.

View the table below for a depreciation summary for 2012 and what is expected for 2013.

Related Articles: Bonus Depreciation and Section 179 Depreciation Rules for 2012
Please contact Bergan Paulsen for additional information.

Depreciation Summary
		2012			2013
Description		Section 179	50% Bonus Depreciation		Section 179	Bonus         Depreciation
Amount		$139,000	No Limit		$25,000 (plus inflation adjustment)	Not Allowed
Timeframe		Tax years beginning in 2012	Calendar Year 2012		Tax years beginning in 2013	Not Allowed
Trades		Boot Only	Adjusted tax basis		Boot Only	Not Allowed
Eligible Assets		New or used tangible personal property and computer software	New property with  <20 yr life and Qualified Leasehold Improvements		New or used tangible personal property and computer software	Not Allowed
Qualified Real Property		Not Allowed	Not Allowed		Not Allowed	Not Allowed
Phase-out Threshold		$560K - $699K	None		$200K (inflation adjusted)	Not Allowed
Iowa Depreciation		Same as federal	Not Allowed		Same as federal	Not Allowed
Election		Form 4562	Applies to all assets in class life - must elect out if not using		Form 4562	Not Allowed
AMT		Allowed	Allowed - No AMT difference unless elect out of bonus		Allowed	Not Allowed
Deduction Limitation		Taxable income limit applies	No limit		Taxable income limit applies	Not Allowed