Manufacturers Led Industries Claiming Billions in Depreciation in 2011
Manufacturers led a host of industries claiming hundreds of billions of dollars in depreciation tax breaks in 2011, the IRS said in statistics released as debate continues on Capitol Hill over extending bonus depreciation and other business tax benefits in the lame-duck Congress.
The Nov. 25 release comes one day after Treasury Secretary Jacob J. Lew said in a statement that the White House won't agree to an extenders deal unless it includes tax breaks for the middle class.
The Internal Revenue Service figures showed that in tax year 2011, businesses claimed nearly $355.8 billion in a special depreciation allowance for qualified property.
Manufacturers took about $92.8 billion in this category, more than any other industry, followed by $56.4 billion claimed by the wholesale and retail trade industry and $49.2 billion for the utilities industry.
Other industries claiming substantial depreciation in this category included the information industry ($42.4 billion), mining ($24.4 billion), and real estate and rental and leasing ($23.2 billion).
The manufacturing industry also took the lead in utilizing deductions under the modified accelerated cost recovery system (MACRS) for assets placed in service in tax years beginning before 2011.
Manufacturers claimed nearly $101 billion in deductions in this category—nearly a third of the $310.4 billion claimed across all industries in 2011. Wholesale and retail trade followed with about $38.9 billion, while the information industry claimed about $33.3 billion in these deductions.
The IRS figures detailed amounts claimed on Form 4562, Depreciation and Amortization (Including Information on Listed Property), for tax year 2011.
To contact the reporter on this story: Alison Bennett in Washington at email@example.com
For More Information
Text of the statistics is at https://www.irs.gov/statistics/soi-tax-stats-corporation-depreciation-data.
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