Section 21 Bonus Depreciation Adjustment

• Library: Tax Law 2009

As explained in §6.11 above, the federal income tax law was amended in 2002 to allow a “bonus” depreciation deduction. This federal law has the effect of “frontloading” a taxpayer’s depreciation deductions—making the deduction larger in the first year the property is placed in service, but smaller in subsequent years.

For property purchased on or after July 1, 2002, and before July 1, 2003, Missouri has decoupled its tax law from bonus depreciation. Thus, as explained in §6.11 above, a corporation must add...