A recent bill passed by Congress could benefit trucking companies and owner-operators who purchased new equipment and placed it in service during the 2014 calendar year.
In general terms, the Tax Increase Prevention Act of 2014 applies numerous tax-relief provisions to the 2014 calendar year that would have otherwise expired.
Those purchasing new equipment and placing in service in 2014 qualify for accelerated depreciation for that equipment on their federal tax return.
Section 125 of the act “would extend 50 percent bonus depreciation to property acquired and placed in service during 2014” and “continue to allow taxpayers to elect to accelerate the use of (alternative minimum tax) credits in lieu of bonus depreciation under special rules for property placed in service during 2014.”
The depreciation provision is identical to one enacted for calendar year 2013.
The bill, HR5771, was introduced Dec. 1 by House Ways and Means Committee Chairman Dave Camp, R-Mich. The U.S. House of Representatives passed it 378-46 on Dec. 3. The U.S. Senate passed it on Tuesday, Dec. 16. The bill is now headed to President Obama’s desk where he is expected to sign it.
HR5771 contains other tax breaks on mortgage interest, capital gains, building improvements and wages. Click here to view a summary of the bill provided by the House Ways and Means Committee.
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