In an article posted on CFO.com, Jeffrey Porter, chairman of the tax executive committee of the American Institute of Certified Public Accountants, advises companies to purchase equipment before year’s end, as the 50% bonus depreciation is one of the least likely 2013 tax breaks to be extended.
The article quoted Porter as saying, “It’s very expensive in terms of tax revenues, and it was primarily there to stimulate the economy. I would think that, at this stage, this would be something [Congress] would be pulling back on,” noting that the economy has been doing better since the 50% bonus depreciation was extended under the American Taxpayer Relief Act of 2012.
Regarding another expiring provision, the Section 179 Election, unless Congress extends the current deduction limit, it will drop from $500,000 to $25,000 on January 1, the article said.
To read the full CFO article click here.
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