Industry Investment Incentives

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.

2015-12-04T16:48:20+00:00 March 10th, 2011|Categories: NTRA Capitol Hill Reports|
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