Tax Provision for Businesses 2010-2012
Bonus Depreciation Provision for Businesses (2010-2012) – US

President Obama signed House Bill H.R. 4853 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) into law on December 17, 2010. H.R. 4853 includes a two-part extension of the bonus depreciation provision for all businesses, regardless of size. The potential tax benefits may be useful for your customers.

On December 17, 2010, President Obama signed into law House Bill H.R. 4853. This new law could allow businesses to write off an additional 100% of the cost of qualifying assets (including software) acquired and placed into service after September 8, 2010 through December 31, 2011. This law could also allow businesses to write off an additional 50% of the cost of qualifying assets placed into service after December 31, 2011 through December 31, 2012. This bill was signed in an attempt to encourage capital investment through 2012.

We want to let you know about this bill now because some of its provisions will only apply to qualifying assets put into service in 2010 and 2011. Further, there is no guarantee that a similar bill will be signed into law in 2013. As such, it is possible that certain tax benefits offered by this bill will only be applicable to qualifying asset purchases that occur over the next two years.

To further illustrate the potential tax benefits that this bill may offer to you or your customers, we have attached a copy of the text of the bill. We encourage you or your customers to review this bill and its implications together with a qualified tax advisor.

THE CONTENTS OF THIS ARTICLE WERE WRITTEN AS A CONVENIENCE TO YOU. THIS ARTICLE DOES NOT CONSTITUTE TAX ADVICE FROM MICROSOFT OR ITS EMPLOYEES AND REPRESENTATIVES. IT IS OF A GENERAL NATURE ONLY AND IS NOT A SUBSTITUTE FOR CAREFUL TAX PLANNING AND ADVICE. THIS ARTICLE IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSIDERATIONS RELATED TO H.R. 4853. AS SUCH, ALL READERS ARE URGED TO CONSULT WITH THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL TAX CONSIDERATIONS ASSOCIATED WITH H.R. 4853, AS WELL AS ANY CONSIDERATIONS ARISING UNDER THE LAWS OF ANY STATE, LOCAL, OR OTHER TAXING JURISDICTION. THIS ARTICLE WAS NOT INTENDED OR WRITTEN TO BE USED, AND SHOULD NOT BE USED, BY ANY READER FOR THE PURPOSE OF AVOIDING U.S. FEDERAL OR OTHER TAX PENALTIES, OR FOR THE PURPOSE OF PROMOTING, MARKETING, OR RECOMMENDING TO ANOTHER PARTY ANY TAX-RELATED MATTERS.