February 13, 2008
Special Depreciation Allowance for Certain Property. A 50-percent additional first year depreciation deduction may be allowed for certain new property acquired by the taxpayer after December 31, 2007, and before January 1, 2009. The Act also increased the first year depreciation by $8,000 for passenger automobiles to which the 50-percent additional first year depreciation deduction applies.
Increased Section 179 limits. The maximum section 179 deduction you can elect for qualified section 179 property you placed in service in tax years that begin in 2008 has increased to $250,000 ($285,000 for qualified enterprise zone property and qualified renewal community property). This limit is reduced by the amount by which the cost of section 179 property placed in service in the tax year exceeds $800,000. For qualified section 179 Gulf Opportunity (GO) Zone property placed in service in certain counties and parishes of the GO Zone, the maximum deduction is higher than the deduction for most section 179 property.
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