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Tax Extenders Benefit Cost Segregation

12.22.2014

map, money, and blueprintOn December 19, President Obama signed into law a one-year tax extenders package. The package extends about 50 expired tax provisions through December 31, 2014. The extenders comprise a range of tax incentives for businesses, individuals and nonprofits.

The tax extenders package reinstated or extended several depreciation or expensing provisions for cost segregation.

Bonus First-Year Depreciation Extension
This extends 50 percent of first-year bonus depreciation for qualified property through 2014.

179 Expensing Amount Election
Qualified taxpayers have the ability to deduct up to $500,000 of qualified tangible personal property under Section 179. The phase-out amount for 179 expensing was increased to $2 million. The $250,000 deduction for qualified leasehold, restaurant and retail improvement property was also reinstated.

15-Year Recovery Extended
The provisions extend the inclusion of qualified leasehold improvement property, restaurant property and retail improvement property in the 15-year MACRS class as opposed to the traditional 39-year recovery period.

​The extenders also allow businesses to elect an increased AMT limitation instead of claiming bonus depreciation.

Click here for a list of additional extenders.

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To further discuss these tax provisions, please contact Rob Haggerty, Partner, Tax Services, at 314.983.1311 or rhaggerty@bswllc.com.

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