Bonus Depreciation

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Dictionary Says

Definition of 'Bonus Depreciation'

An additional amount of deductible depreciation that is awarded above and beyond what would normally be available. Bonus depreciation is always taken right away, in the first year that the depreciable item is placed in service. This type of incentive is offered either as an additional incentive or as a measure of relief for small businesses that want to buy additional equipment.
Investopedia Says

Investopedia explains 'Bonus Depreciation'

The actual amount of bonus depreciation varies from year to year, but it is offered on top of the maximum allowable Section 179 expensing limits and standard first-year depreciation. Bonus depreciation cannot be taken on property that is required to use the Alternative Depreciation Schedule, but it is exempt from alternative minimum tax (AMT) adjustments. Bonus depreciation is classified as a Section 1245 depreciation deduction when disposing of an asset, and is subject to recapture as ordinary income.
Search results for

'Bonus Depreciation'

  • The Small Business Jobs Act: Make It Work For You

    http://www.investopedia.com/articles/economics/11/small-business-jobs-act.asp
    ... The Act extends 50% bonus depreciation under Section 168(k) by one year for
    qualified property placed in service during 2010. Taxpayers ...

  • 5 Small-Caps with Growth Potential

    http://stocks.investopedia.com/stock-analysis/moneyshow/5Small-CapswithGrowthPotential.aspx
    ... so much of a maintenance component to it, that there is some pent-up spending right
    now in those areas, as well as a benefit from the bonus depreciation for a ...

  • Avoid Capital Gains Tax On Your Home Sale

    http://www.investopedia.com/articles/06/section1031exchange.asp
    ... will be tax free under Section 1031 exchange rules. As an added bonus, Nate
    may even be able to claim depreciation on the building. ...

  • Accounting For Differences In Oil And Gas Accounting

    http://www.investopedia.com/articles/fundamental-analysis/08/oil-gas.asp
    ... Also included in acquisition costs are any lease bonus payments paid to ... financial
    results of a manufacturing company are impacted by depreciation expense for ...

  • Taking Stock Of Discounted Cash Flow

    http://www.investopedia.com/articles/03/011403.asp
    ... Forecasted free cash flows (operating profit + depreciation + amortization of goodwill -
    capital expenditures ... An added bonus is that DCF is less likely to be ...

  • Commute Smart: Save Time, Money And The Earth - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0609/Commute-Smart-Save-Time-Money-And-The-Earth.aspx
    ... Fuel; Depreciation; Insurance; Wear and tear/maintenance; Pollution; Taxes; Tolls;
    And other ... weather, roads and physical fitness permit (and as a bonus, biking to ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard VI-A ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-disclosure-conflicts.asp
    ... 5.14 Foreign Exchange Parity Relations; 5.15 Currency Appreciation and
    Depreciation; 5.16 Effect of Monetary Policy; 5.17 Fixed vs. ...

  • Earnings Quality: Why Aren't All Earnings Equal? | Investopedia

    http://www.investopedia.com/university/accounting-earnings-quality/earnings3.asp
    ... Estimating the residual value of assets and choice of depreciation schedule, High. ...
    Management Compensation, Bonus compensation may be tied to performance targets ...

  • Operating Cash Flow: Better Than Net Income?

    http://www.investopedia.com/articles/analyst/03/122203.asp
    ... cash flow doesn't mean EBITDA (earnings before interest taxes depreciation and
    amortization ... book business in a way that will help them earn their bonus, it is ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard IB ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-independence-objectivity.asp
    ... 5.14 Foreign Exchange Parity Relations; 5.15 Currency Appreciation and
    Depreciation; 5.16 Effect of Monetary Policy; 5.17 Fixed vs. ...

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