The Congressional conference committee assigned to consider a longer term extension of the payroll-tax deduction through 2012 met again on Wednesday, February 1. At stake is whether the temporary two-month extension Congress passed last December that expires February 29 will continue through the remainder of the year. The committee also may discuss recent updates to the small business tax incentives enjoyed by the horse racing industry. Each incentive listed below changed from its 2011 level on January 1, 2012.
Section 179 Expense Allowance – allows taxpayers to write off the cost of new or used qualified depreciable property, up to $125,000, if the property is purchased and placed in service before 1/1/2013. In 2011, the expense allowance was $500,000.
Bonus Depreciation – allows taxpayers to write off up to 50 percent of the cost of new qualified depreciable property if the property is purchased and placed in service before 1/1/2013. Beginning on September 8, 2010 and through 2011, bonus depreciation was 100 percent for eligible property.
Click here for more information on these incentives and watch this space for potential updates.