Oh yes… Obama finally went a passed the extension on Bonus Depreciation and Sec. 179 for 2010 assets on Sept. 27th, 2010. Whew! This means, that assets (personal property) purchased between Dec. 31, 2009 and January, 1, 2011 qualify for accelerated bonus depreciation and for those that are eligible for Sec. 179 can combine the savings!
Recent economic stimulus for Sec. 179: SBJA increased the expensing limits of the Internal revenue Code for any taxable year beginning in 2010 and 2011. For both tax years, companies can expense up to $500,000 as long as your total purchased in either year do not exceed the $2 million limit. Each dollar over, the expensing amount correspondingly drops by one dollar. Companies that spend more than $2.5 million on tangible personal property cannon tax advantage of Sec. 179 – however, you can still benefit from the Bonus Depreciation for 2010.
If you are using Sage FAS Asset Accounting v2010.1, you CAN currently use the bonus switch. Sage was already pro-active (shout out to Sage – I know ERP systems won’t handle this!) and wrote in bonus for 2010 assets with a WARNING that the extension was pending. You can still use the Bonus Switch for all PERSONAL property placed-in-service between Dec. 31, 2009 and Jan. 1, 2011. Once you turn on the switch, you just click OK on all the warnings that will appear.
As for the new provisions on Sec. 179, for now, you will need to sit tight and that update (along with taking the warnings out of the switch/system) will be out in the next version release of v2011.1 – sketch for December 2010. ONLY current Sage FAS SupportPlus members and new licensed users will receive the latest and greatest. Packed full of all these great Tax advantages!
More information about it – check out this cool link