The folks at the increasingly useful TaxCoach software have just produced the following handy and concise summary of the new tax law that can be automatically personalized for clients set up on their system.

President Bush has just signed a $168 billion stimulus package to prop up the economy and help prevent a recession. News reports have focused on tax rebates for individuals. But you may not realize that the package includes generous incentives for buying business equipment as well.

Want more cash in your pocket? The new law reduces the 10% federal tax bracket to zero for 2008 -- then delivers the savings now in the form of rebates ranging up to $600 for unmarried individuals, $1,200 for married couples, and $300 per child up to a maximum of $600. This break phases out for incomes above $75,000 ($150,000 for joint filers).

The new law also gives you a 50% bonus depreciation deduction for new equipment you buy for your business in 2008. It raises the Section 179 first-year expensing limit from $128,000 to $250,000. And it doubles the phaseout for Section 179 deductions from $400,000 to $800,000. This is great news if you're planning to buy vehicles or equipment for your business, or even to renovate business premises.

This is a special, limited-time break, so before you buy new equipment, be sure to call us.

Labels: NewTaxLaws

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 2/14/2008 07:38:00 PM Send this post: