New Tax Tips for Businesses

Business purchase write-offs: In an effort to stimulate business growth, the Section 179 depreciation allowance for business equipment or property has been expanded for the 2008 tax year only. Business owners can write off up to $250,000 in qualified purchases, double the amount in 2007. In addition, your purchases can total up to $800,000 in all (up from $500,000) without reducing your first-year depreciation write-off. If using the Section 179 deduction doesn't cover all you spent, you can use a greatly expanded, first-year special depreciation deduction for up to 50 percent of the remainder, up to the $800,000 limit.

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