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Did you know there is an Economic Stimulus Act of 2008 for businesses? However, unlike the economic stimulus for individuals, this is not an automatic benefit for businesses.
There are two provisions to the stimulus:
1. The limit to which a business can expense property has increased from $128,000 to $250,000 for 2008.
2. There is an additional 50% special (or bonus) depreciation allowance for property acquired and placed into service for 2008.
What does this mean? To take advantage of these provisions, businesses must purchase qualifying property in 2008. Qualifying property includes section 168 property with a recovery period of 20 years or less, off the shelf computer software, water utility property and qualified leasehold improvement property.
For more details on how to save your business more money, visit the IRS website.
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