Summary
NEW YORK, Dec. 29, 2011 /PRNewswire/ -- This New Year may not be so happy for thousands of companies when they discover that they can no longer reap the benefits of 100 percent bonus depreciation in 2012. CFOs and tax directors across the country could see their tax bill double or more in the coming year. Fortunately, there is a solution. Companies can combat higher taxes and increase cash flow by implementing a like-kind exchange (LKE) program now. Commonly referred to as the ultimate stimulus provision, an LKE has been a part of the tax code for approximately 90 years.
Since September 2010, companies of all sizes have been able to write-off the entire cost of most capital expenditures. After a difficult battle between the House and Senate, the ability to expense such purchases is quickly coming to an end. On December 23rd, President Obama signed into law H.R.3765, the Temporary Payroll Tax Cut Continuation Act of 2011. Although the original bill passed by the House included several tax extenders, the Senate could not find a way to pay for these items. As a result, the final legislation does not extend 100 percent bonus depreciation for another year.See the full content of this document
Extract
How to Survive the End of Bonus Depreciation
"Many companies have no idea what is coming and are not prepared for the impending cash flow drain," says Ron Hodgeman, Tax Director at WTP Exchange, an...
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