NY - Bonus Depreciation - Revision history

Deback at 01:34, 18 January 2007

Deback — Thu, 18 Jan 2007 01:34:13 GMT

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		+	[[Category: Depreciation]]

Tdoyle at 23:31, 30 August 2005

Tdoyle — Tue, 30 Aug 2005 23:31:15 GMT

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	[[Category: State and Local Articles]]		[[Category: State and Local Articles]]
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Tdoyle at 18:42, 29 May 2005

Tdoyle — Sun, 29 May 2005 18:42:19 GMT

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	New York does not conform to the “bonus” depreciation provisions, except with regard to qualified resurgence zone property and qualified New York Liberty Zone property. New York taxpayers are required to add-back the amount of federal “bonus” taken to the extent it exceeds the amount of depreciation allowed if the property did not qualify for the “bonus”.		New York does not conform to the “bonus” depreciation provisions, except with regard to qualified resurgence zone property and qualified New York Liberty Zone property. New York taxpayers are required to add-back the amount of federal “bonus” taken to the extent it exceeds the amount of depreciation allowed if the property did not qualify for the “bonus”.

-	[[Category: State and Local]]	+	[[Category: State and Local Articles]]

ABrady at 20:15, 28 April 2005

ABrady — Thu, 28 Apr 2005 20:15:40 GMT

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	'''Federal "Bonus" Depreciation'''		'''Federal "Bonus" Depreciation'''

-	In March 2002, the Job Creation and Worker Assistance Act (“JCWAA”)(P.L. 107-147) was signed into law. The foundation of this new legislation was the allowance of “bonus” depreciation (IRC Sec. 168(k)). The new “bonus” depreciation provisions provide a special depreciation allowance for qualified properties placed in service after September 10, 2001 and before January 1, 2005. These provisions allow 30% of the ~~assets~~ cost to be immediately deducted in the initial year the property is placed in service.	+	In March 2002, the Job Creation and Worker Assistance Act (“JCWAA”)(P.L. 107-147) was signed into law. The foundation of this new legislation was the allowance of “bonus” depreciation (IRC Sec. 168(k)). The new “bonus” depreciation provisions provide a special depreciation allowance for qualified properties placed in service after September 10, 2001 and before January 1, 2005. These provisions allow 30% of the asset's cost to be immediately deducted in the initial year the property is placed in service.

	Qualified property which is eligible for “bonus” depreciation must have a recovery period of 20 years or less and can not be considered IRC Sec. 197 computer software.		Qualified property which is eligible for “bonus” depreciation must have a recovery period of 20 years or less and can not be considered IRC Sec. 197 computer software.

-	In May 2003, the Jobs and Growth Tax Relief Reconciliation Act (“JGTRRA”)(P.L. 108-27) was enacted. This act modified the “bonus” depreciation ~~provision~~ contained in the JCWAA.	+	In May 2003, the Jobs and Growth Tax Relief Reconciliation Act (“JGTRRA”)(P.L. 108-27) was enacted. This act modified the “bonus” depreciation provisions contained in the JCWAA by increasing the deduction from 30% to 50% of the assets cost for property acquired and placed into service after May 5, 2003, and before January 1,2005. This modified provision can be applied to all property, which qualifies for the 30% “bonus” depreciation deduction.
-		+
-	~~The Jobs Growth and Tax Relief Reconciliation Act of 2003 (JGTRRA) increased~~ the ~~immediate~~ deduction from 30% to 50% of the assets cost for property acquired and placed into service after May 5, 2003, and before January 1,2005. This modified provision can be applied to all property, which qualifies for the 30% “bonus” depreciation deduction.	+

	State conformity to the federal “bonus” depreciation provisions provided by the JCWAA and JGTRRA is a major concern for taxpayers, as many states have decoupled in whole or part from these federal tax acts.		State conformity to the federal “bonus” depreciation provisions provided by the JCWAA and JGTRRA is a major concern for taxpayers, as many states have decoupled in whole or part from these federal tax acts.

ABrady at 19:44, 28 April 2005

ABrady — Thu, 28 Apr 2005 19:44:21 GMT

New page

'''Federal "Bonus" Depreciation'''

In March 2002, the Job Creation and Worker Assistance Act (“JCWAA”)(P.L. 107-147) was signed into law. The foundation of this new legislation was the allowance of “bonus” depreciation (IRC Sec. 168(k)). The new “bonus” depreciation provisions provide a special depreciation allowance for qualified properties placed in service after September 10, 2001 and before January 1, 2005. These provisions allow 30% of the assets cost to be immediately deducted in the initial year the property is placed in service.

Qualified property which is eligible for “bonus” depreciation must have a recovery period of 20 years or less and can not be considered IRC Sec. 197 computer software.

In May 2003, the Jobs and Growth Tax Relief Reconciliation Act (“JGTRRA”)(P.L. 108-27) was enacted. This act modified the “bonus” depreciation provision contained in the JCWAA.

The Jobs Growth and Tax Relief Reconciliation Act of 2003 (JGTRRA) increased the immediate deduction from 30% to 50% of the assets cost for property acquired and placed into service after May 5, 2003, and before January 1,2005. This modified provision can be applied to all property, which qualifies for the 30% “bonus” depreciation deduction.

State conformity to the federal “bonus” depreciation provisions provided by the JCWAA and JGTRRA is a major concern for taxpayers, as many states have decoupled in whole or part from these federal tax acts.

'''NY State Conformity'''

New York does not conform to the “bonus” depreciation provisions, except with regard to qualified resurgence zone property and qualified New York Liberty Zone property. New York taxpayers are required to add-back the amount of federal “bonus” taken to the extent it exceeds the amount of depreciation allowed if the property did not qualify for the “bonus”.

[[Category: State and Local]]