New Section 179 Economic Stimulus: Tax Law Benefits New Exhibit Purchasers
Typically, if property for business, such as a new exhibit, has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.
Now there is a new way to immediately receive these income tax benefits in one tax year. Internal Revenue Code Section 179 allows a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.
The "economic stimulus" tax-law changes for 2008 have made this option much more appealing by dramatically increasing the amount that can be written-off immediately. These changes mean that in 2008 a business can expense $250,000 in capital expenditures, up to an overall investment limit of $800,000
Only certain kinds of property purchases are covered. To determine exactly how the changes will affect your plans for the year you need to consult your tax professional. This could be a great time to look into that new exhibit.