In September 2010, President Obama signed into law an extension of the 50 percent depreciation originally begun in 2008. The bonus depreciation is in addition to the regular depreciation which greatly increases the first year write-off. The new law is retroactive to January 1, 2010 and extends the period of time to take the 50 percent bonus depreciation until December 31, 2010.
Eligible property generally includes business property classified as accelerated cost recovery property with a depreciation period of 20 years or less. This includes:
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Water utility property
Off-the-shelf computer software
Qualified leasehold property
Passenger automobile used at least 50 percent for business
The extension also includes property with a recover period of 10 years or longer, for transportation property, and for certain aircraft.
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