[PB316]

Hey guys,

I still have 2010 regulation becker book, and it seems this section is not in becker 2011. I looked at 2011 and saw a new paragraph in its place – ‘Expensing and bonus depreciation’. Is that still section 179? So I can forget about 2010’s section 179? Please advise. Thanks in advance!

[lovexly]

I'm using Yaeger 2011 and Phil does teach about Sec 179. Sec 179 is expensing so I think that might be the new title for Becker.

personal prop used in a trade/business | Sec 179

—-

Bonus Dep is computed AFTER Sec 179.

you have to subtract sec 179 expense deduction first to get you your remaining basis (sec 179 only applies to first year

then u multiply the remaining basis by 50% to = bonus depreciation

remaining basis – bonus depreciation = new basis * Avg Convention MACRS depreciation

Hope this helps in even the slightest!

FAR - 83 - 05/23/2011
BEC - 85 - 07/02/2011
AUD - 79 - 08/13/2011
REG - scheduled Oct 10

[Anonymous]

For the new 2011 rule, do we still need to use the original cost to subtract 800,000 in order to calculate the deduction? Or do we just subtract 250,000 directly?

Also, do you guys know when do we use 250,000 and when do we use 500,000? I see there are two numbers given on my Becker updated rule

[Anonymous]

Small businesses can elect to depreciate up to $500,000 of new or used equipment placed in service during the taxable year. However, that maximum amount is reduced dollar for dollar for any amount over $2,000,000 (e.g. complete phase-out at $2.5MM). That is the new rule.

[ppierce]

What happened to the $800,000 rule?

FAR 80
REG 76
AUD 85
BEC 85
Ethics 98
DONE!!!!!!!!!!!!!!!!!!!!

[Anonymous]

It was replaced this year by the 500,000/2,000,000 rule, thus benefitting small businesses.

[hammy036]

And the bonus is 100% now (instead of 50%) if I'm not mistaken.

[superdope]

could someone confirm hammy036's input? is the bonus depreciation 100% or still 50%?

[NYC_CPA]

This is what I have from Yaeger update, “Under the Small Business Jobs Act of 2010, within the thesholds($500,000 for 2010 and 2011), the act also allows taxpayers to expense upto $250,000(as part of the $500,000 limit) of the cost of Qualified Real Property, which are Cost of qualified leasehold improvement property, Qualified restaurant property and Qualified retail improvement property”. Small Business Jobs Act also extended the 50% write-off for 2010. Hope this helps.

"I hate every minute of training, but I said, DON'T QUIT. Suffer now and live the rest of your life as a champion" - Muhammed Ali
FAR: 65(11/10), 80(02/11->Yaeger Audio!)
AUD: 73(05/15/11 Yaeger Homestudy), retake 76(08/31/11)
BEC: 73(08/05/11) Yaeger Homestudy, 71(11/30/11), retake 80(04/20/12)
REG: 80 (11/15/11) Yaeger Homestudy

[hopefulcpa28]

It's 100% now. Becker updated that.

Bonus depreciation is only for NEW property, not old (old is okay for $500,000/$2,000,000 rule).

Btw, is bonus depreciation only for the first year?

[hopefulcpa28]

I believe yankeeaccountant posted this link in one the thread I started for Section 179.

https://www.section179.org/section_179_deduction.html

[Author]

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