Additional first-year depreciation allows for extra depreciation allowances in the acquisition year of specific business properties, as mandated by federal income tax laws. This incentivizes the acquisition of certain types of business property. It is periodically updated by Congress, with varying limits, rates, and qualifying property.
Itemized deductions are specific expenses that can be deducted from taxable income to reduce the amount of federal income tax owed. They include costs such as mortgage interest, property taxes, and certain types of losses.
A Mortgage Credit Certificate (MCC) enables a borrower to claim a portion of the mortgage interest paid as a credit against federal income tax, helping first-time home buyers by reducing their overall tax liability.
