The Tax Relief Act authorizes a significant investment incentive for members of the Thoroughbred industry this year in the form of 100 percent bonus depreciation. This incentive allows buyers to write off the entire cost of qualifying property, such as a yearling, on their tax return. Below are the details:
Bonus Depreciation for 2011:
- 100% bonus depreciation is in effect for qualifying property
- Applies to horses, farm equipment and most other depreciable property
- Property must be new – its original use must begin with the taxpayer
- Property must be purchased this year and placed in service prior to January 1, 2012
- Bonus depreciation is scheduled to drop to 50% for 2012
Click here to read more information about this and other investment incentives for 2011.
Please consult your tax advisor for details on how you may be able to take advantage of this opportunity.