Bonus Depreciation for Higher 2013 Tax Rates
Fiscal Cliff deal extends bonus depreciation and retroactively enhances expensing election for 2012 and into 2013
By Scott Battle
50% Bonus Depreciation may be available for new Diamonds contracted for purchase in 2012 and delivered in 2013*.
*Requirements include a binding contract in place before the end of 2012, along with a 10% deposit, and the aircraft must be used primarily for business.
Here’s an example of potential 2013 depreciation for a new Diamond DA42 NG-VI costing $899,000:
First-year Income Tax Deduction in 2013 = $539,400. This includes 50% Bonus Depreciation and 20% for the first-year of MACRS.
$539,400 equals 60% of the $899,000 aircraft cost for a tax savings of $188,790, based on a 35% income tax bracket. Should the top income tax rate rise to 39.6% with the failure to extend the current tax rates, the tax savings available becomes $213,602.
Don’t wait – legal, accounting, and financing work cannot be done overnight.
Please contact Scott Battle at Advocate Consulting Legal Group, PLLC to discuss how you can take advantage of Bonus Depreciation in 2013… !
Call (888) 325-1942 or email firstname.lastname@example.org.