CMI Fixed Assets Blog

On December 17, 2010 President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (referred herein as 2010 Tax Relief Act or 2010TRA). 

CMI Fixed Assets version 4.1.95 contains the following changes to implement 2010TRA:

• Bonus Depreciation has been extended.  2010TRA extends the bonus depreciation previously enacted as follows:
• 100% Bonus Depreciation – for qualifying property (MACRS personal (type 45) new property with recovery period of 20 years or less) placed in service after September  8, 2010 and before January 1, 2012, bonus depreciation is 100%.  The 100% applies to both regular tax and AMT.  Bonus Depreciation is automatic unless the taxpayer opts out.  The user will need to “uncheck” the box if this bonus depreciation is not wanted. 
• The law also extends, through December 31, 2012, 100% bonus depreciation for “certain longer-lived and transportation property”.
• 50% Bonus Depreciation – for qualifying property (MACRS personal (type 45) new property with recovery period of 20 years or less) placed in service after December 31, 2011 and before January 1, 2013, bonus depreciation is 50%.  The 50% applies to both regular tax and AMT.  Bonus Depreciation is automatic unless the taxpayer opts out.
• 50% Bonus Depreciation – 50% available in 2013 for “certain longer-lived and transportation property”.
• Qualified Leasehold Improvements –  2010TRA extends through 2011 rule treating qualified leasehold improvement property as 15-yr property.  Such property qualifies for 100% Bonus if placed in service during a tax year beginning in 2010 or 2011.  Note – the 2010 Act also extends qualified restaurant property as 15-yr property, but it is not “qualified leasehold property” so does not qualify for 100% bonus depreciation.  (IRC 168(e)(7)(B) and 168(e)(8)(D))   
• Autos & Trucks –The additional $8,000 1^st year depreciation (if bonus, asset type 4, is selected) is  extended from 12/31/2010 to 12/31/2012.

If you have not received an e-mail with the update information and installation instructions, please contact us, as those have been sent out. 1-800-678-3658

Also, if you have question concerning the implemented changes please feel free to contact us.