St. Petersburg CPA
& Tax Advisor
Since 1989
& Tax Advisor
Since 1989
727-328-2900
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Tax Tips are not a substitute for legal, accounting, tax, investment or other professional advice. Always consult with your trusted accounting advisor before acting upon any Tax Tip.
Tax Tips are not a substitute for legal, accounting, tax, investment or other professional advice. Always consult with your trusted accounting advisor before acting upon any Tax Tip.
Should You Skip Bonus Depreciation?
If your business placed qualified assets in service in 2008, it can claim a 50% "bonus depreciation" tax break for the assets. But there is a potential drawback for some business operations.
Reason: A business may not derive tax benefits if it shows a loss for the year. This is a common occurrence in the current economic environment.
Instead, a business may elect to forego bonus depreciation on its tax return. With this approach, the business can treat unused alternative minimum tax and research credits as being refundable, freeing up cash.
Caution: The rules in this area are extremely complex. It is recommended that you seek professional guidance for your company's situation.
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TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.
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