Congress passed legislation in 2010 that offers members of the Thoroughbred industry significant investment incentives for 2010 and 2011:
Increased Bonus Depreciation
- 100% bonus depreciation in place
- Applies to horses, farm equipment and most other depreciable property
- Property must be placed in service after 9/8/2010 and through 12/31/2011
- Property must be new – its original use must commence with taxpayer
- Rate reverts to 50% for 2012
Small-Business Expense Allowance
- Expense allowance for horses, farm equipment and most other depreciable property is $500,000 for 2011 (and 2010)
- Property must be placed in service in year purchased
- Applies to new or used property
- Expense allowance is reduced by one dollar for each dollar of eligible property purchased that exceeds $2 million
Please consult your tax advisor for more details.