If you were a golfer and you hit a bad tee shot on the first hole, your golfing partners might give you a mulligan. The mulligan is a golfer’s do-over without penalty.
That’s what the 2009 economic stimulus package is hoping you will do—take another shot at buying a depreciable asset for your business.
The official name of the new stimulus is the American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
Like last year’s version, the 2009 stimulus contains three big deals for business:
Fifty percent bonus depreciation
Section 179 expensing of up to $250,000
An increase in first-year luxury car depreciation, from $2,960 to $10,960 (These are 2008 luxury amounts. The IRS has yet to release the 2009 amounts, but we expect them to be very close to those of 2008.)
In many cases, when you take advantage of this new stimulus, you will be discarding an old business ... Log in to view full article.