Special Depreciation Allowance

From TaxAlmanac

The Job Creation and Worker Assitance Act of 2001 provided a special depreciation allowance for qualified properties. Qualified properties are new properties placed in service after September 10, 2001 and before January 1, 2005, with a recovery period of 20 years or less. The act allowed 30% of the assets cost to be immediately deducted. The Jobs Growth and Tax Relief Reconciliation Act of 2003 increased the immediate deduction from 30% to 50% of the assets cost. Qualilfied automobiles have their luxury automobile limits increased by an additional $7,650.

This deduction is not allowed for property placed in service on or after January 1, 2005, with exceptions for certain properties. Any asset that has claimed the special depreciation allowance is not subject to alternative minimum tax adjustments.