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What’s new for taxes in 2012? The good news and bad news

Real Estate Tax Talk

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Several tax changes will go into effect on Jan. 1, 2012 -- some good, some not so good. Here are the most important changes you should know about: Tax breaks that have been reduced for 2012 Several tax breaks will be reduced, but not eliminated, for 2012. 1. Bonus depreciation: During 2011 taxpayers can deduct in one year 100 percent of the cost of most types of personal property they buy for their businesses and place in service during the year. This amount is scheduled to lower to 50 percent for most types of property placed in service during 2012. However, it is possible that 100 percent bonus depreciation will be extended through 2012. 2. Section 179 expensing: For 2011, the maximum Code Section 179 deduction is $500,000, the highest it has ever been. The maximum Section 179 deduction will be reduced to $139,000 for 2012. Moreover, the 2012 limit will have to be reduced dollar for dollar by any amount by which the cost of Code Section 179 property placed in service dur...