What are the bonus first-year depreciable amounts for 2003, 2004 and 2005?
Increase and extension of bonus first-year depreciation. For 30% bonus first-year depreciation purposes, property can be acquired before 2005. 50% bonus first-year depreciation (instead of 30% bonus first-year depreciation) applies to qualified property if (1) its original use commences with the taxpayer after May 5, 2003; (2) the asset is acquired by the taxpayer after May 5, 2003 and before 2005 (there can’t be a written binding contract for acquisition in effect before May 6, 2003); and (3) it is placed in service by the taxpayer before 2005 (before 2006 for certain property with longer production periods). Businesses can elect on a class-by-class basis to claim 30% instead of 50% bonus first-year depreciation for qualifying property, or elect not to claim bonus first-year depreciation at all. Two situations in which a taxpayer would likely consider making an election to claim smaller bonus first-year depreciation (or to elect out of it entirely) are where the taxpayer (1) has about
