IRS explains the new bonus depreciation rules
Under the Tax Relief Act of 2010, you may able to write off the entire cost of business property placed in service this year, thanks to 100% "bonus depreciation."
Prior to this law, a business was able to claim 50% bonus depreciation on qualified new (but not used) property placed in service in 2010. This included property with a cost recovery period of 20 years or less, most computer software, qualified leasehold improvement property, and certain water utilitiy property. Bous depreciation could be coordinated with Section 179 first-year expensing and regular depreciation deductions (subject to the annual limits).
