Tax Law Changes/Updates
2008 Tax Law Changes
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Jul 2, 2008, 09:41

- Enhanced expensing and depreciation provisions for businesses buying and placing equipment into service in 2008.  Code Section 179 expensing limits were increased from $128,000 to $250,000 and the phase-out threshold increased from $510,000 to $800,000.  Fifty perc ent of the cost of new equipment purchased in 2008 can be depreciated with the remaining basis eligible for ordinary depreciation under the Modified Accelerated Cost Recovery System (MACRS).

- The business standard mileage rate increases for last half of 2008.  The optional mileage allowance will increase from $0.505 to $0.585 per mile for buisness travel from July 1, to December 31, 2008.

- The mileage rate for individuals using a car to get medical care increases for the last half of 2008 from $0.19 to $0.27 per mile.

- Most individuals will receive a stimulus check for themselsves and their dependents.  A tax return must be filed by October 15th in order to receive a stimulus payment in 2008.