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The Economic Stimulus Act of 2008 significantly increases your purchasing power when it
comes to buying new equipment under Tax Code Section 179. On February 7, 2008 both the Senate and House of Representatives Passed H.R. 5140, the Economic Stimulus Act of 2008 (the Act). The Act contains provisions pertaining to tax rebates and depreciations. When acquiring new equipment, including Mojo Photo Booth, and other tangible goods, you would obviously prefer to deduct the entire cost this tax year, rather than a little at a time over a number of years. Section 179 essentially allows just that - you can deduct, from your taxable income, the full amount of equipment purchases up to the approved limit for a given year (almost doubled to $250,000 for 2008). Of course, this assumes the equipment is used in operations during the calendar year. In addition, depending on the equipment and specific scenario of the business, any excess equipment cost above the amount expensed under Section 179 can be depreciated. And again, 2008 has brought substantial changes - you can now depreciate a full 50% for the first year. |
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