The Economic Stimulus Act of 2008 – Take Advantage
2008-10-09T15:31:06
On February 13, 2008 President Bush signed into law the “The Economic Stimulus Act of 2008” (P.L. 110-185). This means that a business placing less than $800,000 of equipment into service this year would be able to immediately deduct up to $250,000 of its investment in 2008.
The equipment write-offs under IRS Code Section 179 (“Section 179”) have increased from $125,000 to $250,000. The updated code will allow you to elect to expense the first $250,000 of qualified equipment purchases in 2008. This will accelerate the depreciation deduction in year one, thereby doing away with traditional depreciation methods over a five- or even a seven-year period.
If you’re a dentist or doctor maybe you’ve been thinking about adding an AED (automatic external defibrillator) or patient monitor to your office. Wouldn’t now be the perfect time?
This tax provision is valid through 2008 and pertains to small- and medium-sized businesses. In 2009 the expensing amount is expected to revert back to $125,000.
Sources: PennWell Dental Group, Knol, The White House, CNNMoney.com