bonus depreciation

bonus depreciation

Additional depreciation deductions allowed by the IRS under certain circumstances and possibly in certain areas.After the devastating effect of the 9/11 attacks,business owners were allowed to take a first-year depreciation deduction of up to 50 percent of the basis of property placed in service between specified dates. This was in contrast to the normal deduction of 3.63 or 2.56 percent for real property, depending on whether it was commercial or residential rental.Again,after the 2005 hurricane season,the IRS allowed the same bonus depreciation for property placed in service in specifically named Gulf Opportunity Zone counties in the affected states.