What changed in 2008 for businesses under the Economic Stimulus Act?
A. Changes include increased section 179 limits and special depreciation allowance for certain property. Note: the linked page reflects both 2007 and 2008 changes. Q. What effect does the Stimulus Act have on section 179 depreciation? A. The Act changed two things: it increased the amount of the 179 depreciation deduction and it raised the phase-out amount. Without the new law, the 179 depreciation deduction limit in 2008 would have been $128,000. It’s now increased to $250,000. The phase-out rule reduces the allowable 179 depreciation deduction if the amount of section 179 property you place in service exceeds a set amount for the year. That amount would have been $510,000 for 2008 but the Act increased it to $800,000. Q. What is 50 percent special depreciation? A. The 50 percent special depreciation is for new, tangible assets purchased and placed into service in 2008. For these assets, a taxpayer is entitled to depreciate 50 percent of the cost or other basis during the year the ass
