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Tuesday, July 22, 2008

Take Advantage of Tax Breaks

The Economic Stimulus Act of 2008 grabbed headlines with the tax rebates going back to taxpayers. But the Act had some pretty impressive benefits for commercial investing. Specifically, the Act increased the Section 179 tax break businesses get on purchases of business equipment and/or property with recovery periods of 20 years or less. The Stimulus Act allows you to depreciate the entire amount of the equipment in the first year – where in the past you had to break the depreciation into multiple years.

Not only that, but the Act allows an additional bonus depreciation of up to 50% on 20 year or less property and other qualified assets in the first year if they put the property to use in 2008. This applies to BOTH equipment purchases AND business property purchases (Commercial Real Estate). The law allows 100% deductibility up to $250,000 as long as that does not exceed the taxpayers taxable income. Bonus depreciation of 50% on the amount above $250,000 is allowed up to $800,000 in purchases. Above $800,000 you lose the dollar for dollar expensing. THE KEY TO THIS ACT IS THE EQUIPMENT OR PROPERTY MUST BE PURCHASED AND IN USE IN 2008 TO QUALIFY. So you need to act fast to take advantage of these tax breaks. Check with your accountant to make sure there are not any nuances in your personal financial situation that would exempt you from taking advantage of this special tax break and then get out there. There has never been a better time to buy a property for your business, or to buy equipment for it. Whatever your needs, Commercial Capital Ltd. can help you with the financing. Call your Commercial Capital Ltd. Area Rep today to discuss this and all your commercial lending needs.

Tony DeCresie
Commercial Capital, Ltd.
Tel: 863-298-8900
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