House Passes Bill for Permanent Depreciation
House of Representatives passes a bill allowing a permanent bonus depreciation.
July 13, 2014
According to the American Horse Council, the House of Representatives passed a bill Thursday to amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation (H.R.4718).
The bill was introduced by Congressman Pat Tiberi (R-Ohio). At the end of 2013, a number of favorable tax provisions for horse owners, breeders and businesses expired, including so called bonus depreciation.
Bonus depreciation allows anyone in a business to write-off up to 50 percent of new property purchased and placed in service in a tax year, including assets used in the horse business, such as horses and other equipment. It is restricted to new assets, which meant that the first use of the horse or other property had to begin with the taxpayer.
The bill would restore and make permanent 50 percent bonus depreciation for qualifying new property purchased and placed in service, retroactively from January 1, 2014, including assets used in the horse business. The first use of the horse or equipment must begin with the taxpayer. The bill will now have to be approved by the Senate.
The American Horse Council supports this bill.
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