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50% bonus depreciation is set to expire after 2013

Posted by Mike C Posted on Aug 30 2013

Businesses using this break can write off one-half of the cost of new assets with useful lives of 20 years or less. Leasehold improvements made to the interiors of commercial realty are eligible, too. The other half of the cost is recovered via regular depreciation. With all the gridlock in Congress, this easing may not be revived for 2014, so put assets in use by Dec. 31.

If you put a new heavy SUV in use in 2013, you can deduct much of the cost. Say your business pays $60,000 for a new SUV with a loaded gross vehicle weight over 6,000 pounds and puts it in use in Sept. First, the firm can expense $25,000, the cap for SUVs. Half the remaining $35,000cost..$17, bonus depreciation. 20% of the $17,500 balance...$3, normal depreciation. With 100% business use,the total first-year write-off is $46,000. Used SUVs do not get bonus depreciation.