Finance & Enjoyment Blog

Depreciation Changes Likely for Colorado Accounting -

It is likely that this year will be the last year in which businesses can claim special depreciation on new asset purchases equal to 100% of the assets cost, if they are purchased new. This can add to significant tax savings in the 2011 tax year. With these tax savings unlikely to be extended into the future, businesses may wish to consider purchasing any new assets in the current year before this tax advantage is gone.

Another depreciation change that may be coming is an increase in the tax lives for assets put in service in the future. As congress searches for ways to increase tax revenue one area that has been considered is increasing the length of time which assets must be depreciated over in order to decrease the amount of depreciation expense taken in a year and increasing tax revenue in the current period to spread out the tax savings allowed business as they tax depreciation on their assets.

Due to these changes business may wish to consider purchasing assets sooner rather than later if they have the cash available, or have a means of acquiring cash in order to purchase assets, as this would result in more current tax savings for 2011, if you wait you may be forced to recognize any tax savings over a longer period of time.

If you are in need of any tax planning advice please contact us as we can help you with any of your tax accounting needs.

Posted in Your Financial House » Rules and Regulations »

0 Responses to "Colorado Accounting: Depreciation Changes Likely"

Leave a Reply

Fields marked with  * are required.

Name *
Email Address *
(will not be published)