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Ask A CPA - Depreciation

Depreciation - New Business Equipment

Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179. The 2013 maximum deduction is $500,000 with a $2,000,000 Investment based celing. The 2012 maximum deduction was the same amounts. ATRA, extends the amounts deductible by a taxpayer for 2010 and 2011 under Code Sec. 179 to2013 Generally, qualifying property is: Tangible personal property (such as machines, equipment, furniture). Certain other tangible property used for specific purposes. Single-purpose agricultural or horticultural structures. Certain storage facilities. Railroad grading’s or tunnel bores.

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