| Changes for 2008 Auto Mileage Rates Mileage rate changes effective July 1, 2008: 58.5 cents a mile for business 27.0 cents a mile for moving or medical Charitable remains the same at 14 cents a mile Depreciation Companies can write off 50% of the cost of new assets placed in service in 2008, as bonus depreciation. The remaining 50% is recovered via depreciation under normal rules. Used assets do not qualify for this break. All new assets that are depreciated over 20 years or less are eligible. Increased Section 179 Expensing Businesses can expense up to $250,000 of assets that are placed in use during 2008. The full $250,000 can be claimed until $800,000 of assets are put into use in the 2008 tax year. For fiscal year companies, these limits apply only to assets placed in service in the 2008/2009 fiscal year. Vehicle Expensing and Depreciation For 2008 the maximum write-off in the first year is $10,960 for "luxury" vehicles. For new SUVs with a loaded weight over 6,000 pounds, $25,000 of the cost can be expensed, half of the remaining balance can be claimed as bonus depreciation, then 20% of what's left can be taken as regular depreciation.
Weismann & Company, P.C. Phone: (972) 404-0608 E-mail Addresses: |
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