How will the Small Business Jobs Act of 2010 affect your company’s Fixed Assets?

It is that time of year again! The President signed a bill into law on September 27, 2010, that includes some enhanced business tax incentives. Now the fun begins for all the manufacturers of depreciation software as they update their product to include these changes. While they are clicking the keys to release the proper updates, take some time to review the changes or hold a meeting with the CPA of your organization to see how it will impact the company. The primary changes are:

  • An increase to the Section 179 Expense Doubling the previous amount from $250,000 – $500,000. This will affect assets placed in service in 2010 and 2011.
  • Real Property outside a qualified disaster zone can be expensed under the Section 179 for the first time! This will affect the tax year beginning 2010 or 2011, up to $250,000.00. Real Property included in this can be leasehold improvement, qualified restaurant property and quality retail improvement property.
  • Qualified Computer software property has been extended in the Section 179 Expense for 2011 tax year.
  • The bonus first year depreciation known as the Section 168k, is extended one year for qualifying property.
  • First year dollar cap for automobiles is increased by $ 8,000.00
  • Cell phones are no longer considered listed property for tax years beginning December 31, 2009.
  • Deductible Start up Expenses increased from $ 5,000 to $ 10,000.00 and is found in the details of the Section 195.

As you can see, your company will benefit from many of these changes and updates to your depreciation software. Sage Software fixed asset experts are implementing these changes into their product SAGE Sage Fixed Assets ASSET ACCOUNTING for the upcoming 2011.1 tax update release. The updates are commonly sent in January or early February. It may be time for you to call your depreciation software manufacturer and find out if they are preparing your company for these important updates!