Media Kit

Fb Share

In recent years, tax laws have been very favorable for billboard operators who want to invest in digital billboards, and 2012 is no different.

Congress reinstated the bonus depreciation deduction and Sec. 179 expensing limits, providing a favorable expensing climate for qualified property acquired and placed into service by the end of 2012.

The tax law can benefit billboard operators by lowering taxable income and freeing up cash. Under current tax law, capital expenditures, including the purchase and installation of digital billboards, are eligible for a 50 percent tax deduction in 2012, plus the percentage of the remaining investment cost basis in the equipment that would ordinarily be depreciable under the Modified Accelerated Cost Recovery System.

For a $200,000 piece of equipment with a five-year MACRS life, the first-year depreciation would be $120,000: a $100,000 depreciation bonus, plus 20 percent of the remaining $100,000 in basis.

You should consider the limits of the law if you buy a digital billboard. Billboard operators can expense up to $139,000 as long as total purchases do not exceed $560,000. For each dollar spent on capital purchases over $560,000, the eligible expensing amount correspondingly drops by one dollar. Thus, companies that spend more than $699,000 on tangible property cannot take advantage of Sec. 179, but they can still use the depreciation bonus.

It is unclear if Congress will act to extend the bonus depreciation in 2013.

As always, you should seek the advice of a tax professional before making any capital purchases or visit the Internal Revenue Service web site at www.irs.gov.

Related Content

User Comments – Give us your opinion!
Products & Services

Cisco Digital Media Suite for Digital Signage, Business IPTV, …

http://global.networldalliance.com/new/images/products/digitalSignageInAction100.gif

2980/Cisco-Digital-Media-Suite-for-Digital-Signage-Business-IPTV-Webcasting-and-Video-Sharing

Digital Signage & Kiosk Software - Nanopoint

http://global.networldalliance.com/new/images/products/2259.png

2259/Digital-Signage-Kiosk-Software-Nanopoint

Cisco Digital Media Players

http://global.networldalliance.com/new/images/products/Digital_Media_Player_4305_1.gif

2984/Cisco-Digital-Media-Players

Dynasign Online Services

http://global.networldalliance.com/new/images/products/dynasign_onlineservices_100.jpg

212/Dynasign-Online-Services

Christie FHD651-P 65” LCD panel

http://global.networldalliance.com/new/images/products/6895.png

6895/Christie-FHD651-P-65-LCD-panel

22" Enabl3D LCD Displays

http://global.networldalliance.com/new/images/products/jacks.jpg

3404/22-Enabl3D-LCD-Displays

YCD|RAMP™ - Retail Advertising and Merchandising Platform

http://global.networldalliance.com/new/images/products/5029.png

5029/YCD-RAMP-Retail-Advertising-and-Merchandising-Platform

Digital Signage

http://global.networldalliance.com/new/images/products/4756.png

4756/Digital-Signage

FWDS42H2/DS - 42” S-series Digital Signage Bundle

http://global.networldalliance.com/new/images/products/5849.png

5849/FWDS42H2-DS-42-S-series-Digital-Signage-Bundle

NDiS M324 Intel® Embedded Open Pluggable Specification (OPS) …

http://global.networldalliance.com/new/images/products/6879.png

6879/NDiS-M324-Intel-Embedded-Open-Pluggable-Specification-OPS-Digital-Signage-Platform-with-Support-Remote-Management

Digital billboards on the move

Latest posts by Darrin Friskney
Darrin Friskney
Friskney is vice president of sales for the Outdoor Advertising Division of Danville, Ill.-based Watchfire Signs, which has been manufacturing outdoor electric signs since 1932.
Digital Menu Boards and ROI
CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.