Q:

What is the bonus depreciation tax break?

A:

Quick Answer

The bonus depreciation tax break is a temporary tax regulation that allows companies to take tax deductions up front on certain expenditures such as equipment, according to the Center on Budget and Policy Priorities. Congress enacted the regulation in 2008 to help during the economic recovery from the Great Recession.

Continue Reading

Full Answer

The regulation is put in place to encourage businesses to make purchases that they would otherwise hold back on during difficult economic times, reports the Center on Budget and Policy Priorities. The tax break has been extended various times, with the last extension allowing businesses to use the tax exemption up to December 31, 2014, says Forbes.

Learn more about Taxes

Related Questions

Explore