Yesterday, both the House of Representatives and the Senate the Economic Stimulus Act of 2008 and it is awaiting signature by President Bush. President Bush expressed his support of the Act and is expected to sign the Act next week.
The major tax provisions of the act include, but are not limited to:
1) The increasing of the Section 179 depreciation expensing limits for small businesses to $250,000 from $128,000 – starting with tax years beginning in 2008. In addition, the act increased the overall investment limit for Section 179 eligibility from $510,000 to $800,000.
2) The Act generally permits a bonus first-year depreciation deduction of 50% of the adjusted basis of qualified property acquired and placed in service during 2008. The applicable “luxury auto” cap on first year depreciation increased to $8,000 for qualifying vehicles. Bonus depreciation will be allowed for both AMT and for regular tax purposes.
3) Tax Rebates of $600 to singles making less than $75,000 and $1,200 to couples making less than $150,000. The Treasury Department expects to begin mailing out rebate checks in May.
4) Tax Rebates of $300 to individuals who did not owe any income tax in 2007 but have at least $3,000 in income.
5) Tax Rebates of $300 per child
If you have any questions on how this act will affect you, don’t hesitate to call our office at 704-752-9845.
If you are not currently a client, you can learn more about our firm at www.calculatedmoves.com.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.