On Monday, September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 into law which includes an extension of the depreciation provisions for businesses buying equipment and computer software and placing it into service during calendar year 2010. This tax relief provides an incentive for you, as a business, to make investments this year.
Generally a business must recover the cost of property over a predetermined period of years. The depreciation provisions under the Small Business Jobs Act of 2010 allows a business to depreciate an additional 50% of the cost of an asset acquired and placed into service in 2010 in that year with the remaining basis depreciated in accordance with the statutorily prescribed recovery period.
One of the types of property eligible for the bonus depreciation is purchased computer software which is generally defined as any program designed to cause a computer to perform a desired function. As such, the purchase of Autodesk software should generally qualify for this incremental tax benefit.
OK, what does this mean to you?
In general, based on our interpretation of the legislation, you will be able to deduct up to 67% of the cost of the software purchased in year of purchase (see example below).
This is generally how it works:
Contact the Autodesk software experts at sales@ideateinc.com today to find the right solution for your business.
While we're software experts, please note that these are general guidelines and should not be construed as tax advice. You should discuss your specific situation with your personal tax advisor.
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