For the year 2011 a company or employer was able to deduct 100 percent of the cost of qualified property that the company or employer placed into service that same year. This type of depreciation is referred to as bonus depreciation and was only allowed for the year 2011.
If a company or employer had put into service any qualified property after December 31, 2011 the 100 percent bonus depreciation would not apply. All qualified property placed into service after December 31, 2011 will be subject to a deduction of only 50% instead of 100%.
Bonus Depreciation in 2013
Any qualified property placed into service after January 1st, 2013 will be subject to a bonus depreciation of 0% instead of the 50% that was allowed in 2012. It is important to keep track of when you placed your property into service because this will determine how much bonus depreciation you will be allowed to capture. It is not enough to guess about these things, in case it is a large amount and the IRS wishes to verify your claim you must have documentation to prove your position.