Does the act reactivate the bonus depreciation benefit enacted under prior stimulus packages?
Yes. The act provides 50 percent bonus depreciation for both regular and alternative minimum tax purposes for ‘qualified property’ acquired during 2008. The remaining 50 percent of the asset’s basis is eligible for regular depreciation deductions over the asset’s applicable recovery period. Qualified property is defined as having a recovery period of less than 20 years, which includes most office furniture, office equipment, computers, off-the-shelf computer software, water utility property and qualified leasehold improvement property. The property must be new, and there can’t be any previous contracts showing the intent to purchase the assets before 2008. Does the act expand the deduction for luxury autos? The maximum first-year depreciation for luxury autos has increased by $8,000, from $2,960 to $10,960 for qualified autos, trucks and vans placed into service in 2008. The vehicle must meet a 50 percent business use test to qualify. CEOs should note that the maximum §179 deduction fo
