Although bonus first-year depreciation and more-generous
Code Sec. 179 expensing limits have been extended before, another lease on life
for these tax breaks is far from certain this time around.
Unless Congress acts, additional depreciation deductions under Code Sec. 168(k)
in the placed-in-service year equal to 50% of the adjusted basis of qualified
property won't be available after this year.
Also, the Code Sec. 179 expensing limit is set to plummet
to $25,000 for property placed in service next year.
Because of this uncertainty, business owners planning to
purchase machinery and equipment during the remainder of this year or early the
next should try to accelerate their buying plans, if doing so makes sound
business sense.
