Purchasing A US Jetting High Pressure Jetting Unit is now a More Profitable Decision Than Ever !!!
The government has created tax incentives that can save money on your 2008 tax bill. Customers who purchase new equipment in 2008 can depreciate 50 % of the cost in the first year , plus a bonus amount determined by the remaining basis.
On Feb. 13, President Bush signed the Economic Stimulus Act (ESA) of 2008 into law. It includes significant incentives to encourage equipment purchasing this year.
First, the ESA temporarily reinstates bonus depreciation. Companies that buy equipment in 2008 will be able to depreciate an additional 50 percent of the cost of assets placed in service this year. As with the depreciation bonus enacted in 2002, only new equipment is eligible.
"New Equipment Must Be Acquired And Placed
Into Service By The Taxpayer Claiming The Depreciation
Bonus Before January 1, 2009"
For both the regular tax and the alternative minimum tax, the first-year depreciation deduction otherwise allowed on certain qualified tangible personal property acquired and placed in service during 2008 is increased by 50 percent of the cost of such property.
The ESA also significantly increases Section 179 small business expensing levels for 2008. Under existing law, the Section 179 small business expensing limit for this year would have been $128,000 with a $510,000 phase-out threshold. For 2008, the ESA temporarily increases the expensing limit to $250,000 and the phase-out threshold to $800,000. Thus, in 2008, a small business can expense up to $250,000 as long as its qualified equipment purchases do not exceed $800,000. For each dollar that total equipment purchases exceed $800,000, the amount that can be expensed decreases by one dollar, so that a company that makes $1,050,000 in total purchases will not be able to expense anything (but could still claim the depreciation bonus).
Contact your accountant, tax professional or the Internal Revenue Service (www.irs.org) for more information.
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