title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Thursday, November 20, 2008
 
2008 Fixed Assets


Q:


Subject:  2008 section 179


We have a "C" corporation that has a fiscal year ending September 30th. If we purchase equipment between 10/01/08 and 12/31/08, can we still get the addition 179 expense deduction and bonus depreciation?
 
Regards,



A:



That specific provision is currently based on the calendar year of 2008, so any assets that you do place into service from 10/1/08 through 12/31/08 will qualify for that special bonus depreciation on the 1120 you file for the FYE 9/30/09.

Your professional tax preparer's tax software should pick that up automatically.  I know that my 2007 Lacerte software is automatically claiming the bonus depreciation on any asset that has a 2008 setup date.

There is also the possibility that the provision for the bonus depreciation will be extended for assets placed into service in 2009; but that will be up to our new rulers in 2009.

Good luck.

Kerry Kerstetter



Follow-Up:



Thank you very much .


 


 

Labels:


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 11/20/2008 11:30:00 AM Send this post:

Powered by Blogger