Tuesday, May 15, 2012


Q.  What are the odds for reinstating 100% bonus depreciation?

A.  The chances are getting lower as the year goes on. Some in Congress wanted to tie this provision to the extension of the two-percentage-point reduction in the employees’ share of Social Security tax, but it was stripped from the final package. On the good side I would imagine that other provisions that lapsed after 2011will be reinstated retroactively in a lame-duck session, including direct payouts from IRAs to charity, higher AMT exemptions and the write-off for state sales taxes.  Who knows what they will do in Washington.