Joe Kristan at the Tax Update Blog reminds small business owners that current Section 179 and bonus depreciation limits expire on December 31:
The last tax bill of 2011, the 2-month payroll tax cut extension, has no provision to extend the 2011 tax treatment for fixed assets. As things now stand, 100-percent bonus depreciation and the $500,000 Section 179 deduction limit go away after Saturday. Starting Sunday, January 1, taxpayers placing assets in service will have 50-percent bonus depreciation available. The maximum Section 179 deduction will fall to $139,000.
That means taxpayers dawdling on fixed asset decisions in hopes these provisions would be extended need to get busy.
Click here to read more of Joe’s story.