Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

1.305 -Deduction for Excess First-Year Depreciation

Item DescriptionFY2012 FY2013 FY2014
1.305 Deduction for Excess First-Year Depreciation
Individuals or investors in a trade or business may elect to expense certain business assets purchased during the taxable year. As of 2012, the total deduction cannot exceed $139,000. For taxpayers whose investment in eligible assets exceeds $560,000 in the year, the ceiling is reduced by $1 for each dollar of investment above $560,000. Any remaining cost must be depreciated according to MACRS, as described in the preceding item. The immediate deduction is a tax expenditure, resulting in a deferral of tax or an interest-free loan.

Origin:  IRC S. 179
Estimate:  $8.5
10.1 8.6 8.5


IRCFederal Internal Revenue Code (26 U.S.C.)
U.S.C United States Code
M.G.L. Massachusetts General Laws
Rev. Rul.; C.B. Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES All estimates are in $ millions.

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