More and more businesses are discovering that purchasing business equipment like machinery, equipment and other assets is easier than ever. Why? The Unemployment Insurance Reauthorization and Job Creation Act of 2010 has created a “bonus” depreciation write-off category for businesses.
The cost of certain capital investments may now be substantially reduced with the combined use of incentives and a 100% bonus depreciation. There is one catch, the bonus depreciation write-off is available only for purchases made in 2011.
Businesses that invest in new business property, machinery and equipment are now able to fully deduct the cost during the current tax year, which reduces taxable income and taxes paid.
With the proper help of a tax professional, a business can now reduce their out-of-pocket equipment and business property expenditures. They can do this because of the 100% federal bonus depreciation.
TO bottom line this, if you need new equipment for your business, then now is the time to purchase it and take advantage of the Unemployment Insurance Reauthorization and Job Creation Act of 2010.