IRS Offers Guidance on Expanded Bonus Depreciation

The Internal Revenue Service has offered guidance on the new 100 percent bonus depreciation in last year’s tax extension and small business legislation.

Revenue Procedure 2011-26 explains the eligibility requirements for qualified property to be eligible for the 100 percent additional first-year depreciation deduction. The earlier bonus depreciation deduction had been 50 percent. Also, Revenue Procedure 2011-26 provides the method for a taxpayer who already timely filed the 2009 tax return to amend it to include qualified property.

Revenue Procedure will be published in IRB 2011-16, dated April 18, 2011.