Tax Stimulus Bill - have you considered the business provisions?

Many of us have been watching with anticipation the movement of the Tax Stimulus bill through Congress. The President has already indicated that he will sign it now that it has passed the House and Senate. The press has been mostly concerned with the tax rebate checks that are going to be written to each household. However, there are business provisions included in this bill that you may have missed and which will have a significant impact on those who are actually running a business.

The so called 50% bonus depreciation is returning. You may remember this from prior years. There is also an increase to the Section 179 expensing limits to $250,000 with an $800,000 spending cap. The new provisions only apply to tangible personal property used in a trade or business. Lastly, the property must be acquired and placed in service during 2008. The last element of good news is the increased depreciation is also allowed for alternative minimum tax (AMT) purposes.

Please contact us if you have any questions regarding the above and feel free to forward this on to any colleague that would benefit from our RINA Alert!