1.305 -Deduction for Excess First-Year Depreciation
Item | Description | FY2010 | FY2011 | FY2012 |
---|---|---|---|---|
1.305 | Deduction for Excess First-Year Depreciation
Individuals or investors in a trade or business may elect to expense certain business assets purchased during the taxable year up to a maximum amount of $125,000. For taxpayers whose investment in eligible assets exceeds $500,000 in the year, the $125,000 ceiling is reduced by $1 for each dollar of investment above $500,000. Any remaining cost must be depreciated according to MACRS, as described in the preceding item. The immediate deduction is a tax expenditure, resulting in a deferral of tax or an interest-free loan. Origin: IRC S. 179 Estimate: $12.2 |
2.8 | 22.9 | 12.2 |
Key:
ORIGIN | |
IRC | Federal Internal Revenue Code (26 U.S.C.) |
---|---|
U.S.C | United States Code |
M.G.L. | Massachusetts General Laws |
Rev. Rul.; C.B. | Revenue Ruling; Cumulative Bulletin of the U.S. Treasury |
ESTIMATES | All estimates are in $ millions. |
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