Look for bonus depreciation to kick into effect this year for businesses (and to end at 12/31/2008).  Bonus depreciation is ADDITIONAL depreciation (above and beyond what is already available to the business owner) that can be claimed in this new year by business owners purchasing (and placing into service) tangible personal property.

Sounds fun.  Here’s the details:

1  You can deduct 50% of the price of property purchased this year,

2  Which is brand new,

3  And is “placed into service” in 2008,

4  In addition to what you can already deduct for depreciation this year,

5  If you want to (you are not required to do this).

Any questions?

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that (i) any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code; (ii) any such tax advice is written in connection with the promotion or marketing of the matters addressed; and (iii) if you are not the original addressee of this communication, you should seek advice based on your particular circumstances from an independent advisor.

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