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In addition to
providing stimulus payments to individuals, the Economic Stimulus Act of
2008 provides incentives to businesses. These incentives include a special
50-percent depreciation allowance for 2008 purchases and an increase in the
small business expensing limitation for tax years beginning in 2008.
By
purchasing new production equipment, such as a laser scanning system your company could
save thousands off their 2008 tax bill*.
Before the 2008 Economic Stimulus Act, a business could deduct up to
$128,000 of the cost of qualified equipment purchases. If the business
purchased more than $510,000 of qualified equipment during the year this
amount was reduced. Now thanks to the 2008 Economic Stimulus Act these
amounts have almost doubled. For 2008, a business can now deduct up to
$250,000 of the cost of qualified equipment purchased in 2008 from their
taxable income. If the cost of qualified equipment purchased during 2008
exceeds $800,000 this amount is reduced. This $250,000 deduction is phased
out on a dollar-for-dollar basis between $800,000 and $1,050,000.
In
addition to the above expensing election the Economic Stimulus Act also
allows for a special 50% bonus depreciation on certain assets placed in
service before January 1, 2009. In order to be eligible for this bonus
depreciation the assets' original use must occur during 2008.
After
reducing the basis of the assets placed in service during 2008 by the above
amounts claimed, companies can take the standard depreciation on the
adjusted basis of qualified equipment.
To
learn more about this Economic Act visit:
www.depreciationbonus.org For further information
on Laser Design systems,
contact Rick Passek, by phone (952-252-3412), fax (952-884-9653), via email
to
laser@laserdesign.com.
* Not to be construed as tax advice. Contact your tax professional for
advice specific to your situation.
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