News & Events

SPECIAL ANNOUNCEMENT FOR OUR CLIENTS:

Section 179 Deduction & Bonus Depreciation. 

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken. Most equipment that businesses purchase or lease will qualify for the deduction. Section 179 limits were increased by the 'Jobs Act of 2010' - allowing businesses to write-off up to $500,000 of qualified capital expenditures subject to a dollar-for-dollar phase-out once these expenditures exceed $2 million. Bonus Depreciation was also increased to 100%. 

Section 181 extended through 2011.

After a bumpy ride in Congress, IRC Section 181 was extended as part of the compromise between the White House and the Republicans.

It was also made retroactive to the beginning of 2010.This means that at least for next year, filmmakers with qualified productions less than $15 Million can deduct production costs as they are incurred rather than having to amortize them once the project is in distribution.

This treatment may be attractive to potential investors.

For further details, please see the following informational handout:

http://governor.state.tx.us/files/press-office/federal_section_181.pdf