Bonus Depreciation: Making Informed Decisions About Upcoming Capital Investments
Mastering the Latest Guidance and Navigating the Complexities of the Qualifying Rules
Qualifying property must be placed in service by Dec. 31, 2011
Recording of a 110-minute CPE webinar with Q&A
This teleconference will explain the federal rules and guidance for 100% bonus depreciation, review the landscape of state matches or decouplings, and discuss potential tax advantages and pitfalls in upcoming corporate investment decisions.
Outline
- Background: Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
- Providing 100% bonus depreciation for qualifying property:
- That was placed in service between Sept. 8, 2010 and Dec. 31, 2011
- Whose original use commenced with the taxpayer after Sept. 8, 2010
- That was subject to a binding written contract commencing after Dec. 31, 2007
- Providing 100% bonus depreciation for qualifying property:
- IRS Rev. Proc. 2011-26
- Amplified on legislation to say that qualifying costs must be paid or incurred after Sept. 8, 2010
- Important for self-constructed assets such as leasehold improvements
- Limited exception election for larger, self-constructed projects
- Step-down election for 50% bonus depreciation, in lieu of 100% bonus depreciation, for qualifying property placed in service in a tax year that includes Sept. 9, 2010
- Related compliance and planning issues to keep in mind
- Certain types of property that aren’t presently subject to bonus depreciation will qualify, if they also meet the definition of “qualified leasehold improvement property”
- Remedies for fiscal-year taxpayers filing returns prior to retroactive extension of bonus depreciation
- Sect. 3.02(2)(b) safe harbor
- Safe harbor election for Sect. 280(F) property
- Other issues
- State matches of or decouplings from federal 100% bonus depreciation
- States that completely track bonus depreciation
- States that don’t recognize it
- States that gradually allow subtractions to recover for addback
Benefits
The panel will analyze these and other key bonus depreciation topics:
- Qualifying rules: The most relevant guidance in Rev. Proc. 2011-26.
- Continuing challenges: What you need to know about the binding contract exceptions, possibilities for bonus depreciation on tenant leasehold improvements and other improvements to existing property, like-kind exchanges, Sect. 280 limitations, etc.
- State matches: Which states where your company files income tax returns match or part from this latest federal bonus depreciation?
- Take bonus depreciation or not: In which situations might a business taxpayer not welcome the 100% bonus depreciation?
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
Faculty

Mary Burke Baker
Government Affairs Advisor
K&L Gates
Her practice specializes in business and individual federal tax matters, including technical tax issues. She has more... | Read More
Her practice specializes in business and individual federal tax matters, including technical tax issues. She has more than two decades of experience in federal tax compliance and also previously worked for several years on the Senate Finance Committee staff.
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Tom Windram
Managing Director
RSM McGladrey
He is assigned to the firm's Washington National Tax Practice and also serves as national leader of its Federal Tax... | Read More
He is assigned to the firm's Washington National Tax Practice and also serves as national leader of its Federal Tax Credits & Incentives Practice, as well as a tax partner with the affiliated McGladrey & Pullen. Previously, he had primary leadership responsibilities at the firm for income tax accounting.
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David McGuire
Director
McGuire Sponsel
Mr. McGuire's client work concentrates on depreciation law, fixed assets and cost segregation. Before founding the... | Read More
Mr. McGuire's client work concentrates on depreciation law, fixed assets and cost segregation. Before founding the firm, he worked in consulting and management roles with Big Four firms.
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Edward (Ed) Meyette
Partner
Crowe
Mr. Meyette leads the firm's Tax Accounting Methods Practice and works with large and middle-market companies... | Read More
Mr. Meyette leads the firm's Tax Accounting Methods Practice and works with large and middle-market companies in a range of industries from manufacturing and distribution to healthcare. He is a frequent writer and speaker on federal tax topics.
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