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Any tax information or written tax advice contained herein (including any attachments) is not intended to be and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. (The foregoing legend has been affixed pursuant to the U.S. Treasury Regulations governing tax practice.)
The matters highlighted on this website are presented in general terms and cannot be applied without consideration of all circumstances. NSBN will provide additional details upon request and will be pleased to discuss with our clients or their attorneys the possible effects of these matters in specific situations.
Email Alert
2008 Economic Stimulus Act Provides Tax Benefits to Businesses
March 5, 2008
Temporary 50% Bonus Depreciation and Enhanced Expensing
Now that the Economic Stimulus Act of 2008 has been officially signed into law, 50% bonus depreciation is back for a limited time. The rules behind bonus depreciation are a bit complex. Under the new law, a taxpayer is entitled to depreciate 50 percent of the adjusted basis of certain qualified property during the year that the property is placed in service. To qualify for the 50 percent special depreciation allowance under the new law, the property must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009.
In addition to bonus depreciation, the Section 179 limit has nearly doubled so the maximum amount that businesses can write off under 179 goes from $125,000 in 2007 to $250,000 during 2008. The $250,000 amount provided under the new law is reduced if the cost of all qualified property placed in service by the taxpayer during the tax year exceeds $800,000. California has not conformed to either of these provisions.
