Article Date:
February 2016

Word Count:



Mind-Boggling Traps in Retroactively Passed Bonus Depreciation

Are you in the bonus depreciation trap?


In December, lawmakers retroactively enacted 50 percent bonus depreciation for 2015.


If you can benefit, that’s great. You can simply claim the 50 percent bonus depreciation on all the qualifying assets you or your corporation purchased during 2015. In general, qualifying assets are those with recovery (depreciation) periods of 20 years or less.1


But if you purchased qualifying assets and you don’t claim bonus depreciation, you face a deadly depreciation trap. (The same is true for your corporation.)


And if you want to use bonus depreciation on one asset class and not on others, you face the deadly trap on the others.


This article could save your bacon by helping you avoid the deadly trap and two other traps if you bought assets in 2015 that qualify for bonus depreciation. ... Log in to view full article.

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