House Plan May Give Retail Owners First Taste of Bonus Depreciation Break

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A House proposal to let taxpayers continue to quickly write off investments in their businesses would break down a barrier that has blocked owner-occupied retail stores from taking that benefit.
Legislation passed in the Ways and Means Committee to extend bonus depreciation—which allows taxpayers to write off 50 percent of an improvement's value in the year it is acquired—would expand the benefit to retail stores that are owned as well as leased.
That was a big victory for the National Retail Federation, which has sought the change since bonus depreciation was first adopted in 2008. Prospects for final passage depend on negotiation with the Senate, where the Finance Committee didn't include the change in the tax extenders package it approved April 3.
That bill awaits floor action (65 DTR G-4, 4/4/14).