Business Tax Break
April 15th, 2010
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Question: How Does Tax Stimulus Package Work for Businesses?
I want to know if a specific provision in the stimulus package relates to purchases made in calendar year 2008 or made in calendar year 2007.
For instance a published report states:
“The cost of the final Business Tax break package was uncertain. The two leaders agreed to allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and to permit small businesses to write off additional purchases of equipment. It appeared that a provision to allow businesses suffering losses now to reclaim taxes previously paid might be dropped to reduce the cost of the business package.”
See report here: http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus
Does this mean if I bought a plant and equipment in 2007 I can right off up to 50% on my taxes filed in 2008? Or does it mean if I bought a plant and equipment in 2008 I can write off up to 50% in 2009?
Please advise, thanks.
Answer: Dante, you may have scared off alot of answerers with your excellent question. It would be your taxes for 2009. However, you must look at deprecition over 5 years as the best option. That will get you the better tax break.
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