Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-16-2011, 07:06 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
What will be the impact of buying assets (not eligible for bonus depreciation) in the 4th Quarter?

If a business buys substantially all their assets in the last quarter of the tax year, then there may be some unfavorable tax treatments on write-offs on acquired assets that are not eligible for bonus depreciation.

The IRS rules states that if a business "makes more than 40% on their 2011 asset purchase after September, regular depreciation is calculated on all assets put in use in 2011 and this amount is calculated on quarterly basis."

Thus, any assets that are acquired in late 2011 get only 1.5 months of depreciation instead of 6 months’ worth. (It is worth noting that this rule is not applicable to buildings).

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When to Pay 4th Quarter Estimated Taxes and Impact on AMT dpmeyer Estimated Taxes 0 12-22-2009 04:10 PM
Effects of paying 4th Quarter Taxes before 12/31 on AMT dpmeyer Estimated Taxes 0 12-22-2009 01:28 PM
Bonus depreciation on software shaui Depreciation 1 03-24-2008 02:10 PM
Today is the deadline for 4th quarter estimated tax payments! TaxGuru Estimated Taxes 0 01-15-2008 11:20 AM
Depreciation method for previously used assets used in business TaxGuru Depreciation 0 02-13-2007 10:04 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning