Law Allows 100% Bonus Depreciation for Luxury Cars in 2011

Law Allows 100% Bonus Depreciation for Luxury Cars in 2011

In December 2010, Congress passed the 100% Bonus Depreciation Law from a bipartisan compromise deal. The law is often a temporary provision that runs to the 2011 tax year only. The bonus depreciation allows business owners to deduct the whole price of purchasing certain qualifying new equipment around of purchase. In other words, as opposed to depreciating a portion from the expense of the apparatus every year, the law allows an added bonus full cost depreciation of the equipment next year. Included in the listing of qualifying equipment are vehicles which weigh greater than 6,000 pounds.

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