What’s in It for You?
Stimulus Package Has Temporary Rules for Expensing, Depreciation If the tax rebate checks from the IRS to millions of American consumers to help pump up the economy weren’t enough for you, the Economic Stimulus Act of 2008 contained other favorable provisions that will benefit small business. It appears that the government wants to inspire businesses to spend freely, too. But the time to act is now. Congress wanted to ensure that the legislation would stimulate the economy as quickly as possible, so these provisions come with expiration dates (as do so many these days). Expensing Enhanced Up to $250,000 of the cost of equipment or property purchased and put to work in the 2008 tax year can be deducted on a firm’s fiscal 2008 tax return. This is twice the amount that could be expensed in 2007. The threshold for a deduction was raised to $800,000 from the former $512,000 limit. This means that if the cost of the qualified property is more than $800,000, the ability to deduc...