Late Tuesday evening HR.5771 was passed by the Senate having already been approved by the House on December 3rd. Once signed by the President into law (sources indicate he will sign this bill) the law will extend the tax breaks regarding Increased Expensing and Bonus Depreciation that expired in 2013 through December 31, 2014.
- Through December 31, 2014 the Section 179 Expense Deduction Limit is $500,000
- 2014 Limit on Capital Purchases = $2 Million
- 50% “Bonus Depreciation” on qualified assets placed in service during 2014, however Bonus Depreciation does not apply to Used Capital Equipment
- As always customers should seek advice from their tax advisers