Economic Stimulus Benefits for Businesses

To help businesses (this includes medical practices!), the Economic Stimulus Act of 2008 authorized a special 50% depreciation allowance and an increased Section 179 expense limit. To qualify for the 50% depreciation allowance, the property must be placed in service after 12/31/07 and generally before 1/1/09. The IRS is developing a new version of the depreciation form for fiscal year filers, which will be designated as the 2007 Form 4562-FY. And eligible businesses can expense up to $250,000 of Section 179 property purchased during the tax year beginning in 2008, with this amount reduced by the cost of Section 179 property placed in service during the tax year in excess of $800,000. News Release IR-2008-22.

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