Economic Stimulus Package Allows Bonus Depreciation for Projects Completed in 2008

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The Economic Stimulus Act signed by President Bush on February 13, 2008 helps businesses in two ways. It gives companies a 50% bonus deduction on most shorter life property placed in service in 2008. And it increases — to $250,000 from $128,000 in 2008 — the section 179 limit on expenses that small businesses can deduct from annual income, with a total cap of $800,000.

Bonus depreciation allows taxpayers to take a deduction of 50% of all property placed in service with a class life of 20-years or less. The remaining basis for the shorter life property gets depreciated over the applicable MACRS recovery period. For every $1 million of 5-year property, the deduction will be approximately $600,000 in the first year.

Bonus Depreciation Qualifications:
To qualify for bonus depreciation in the first year, several criteria must first be met:

Depreciable property will qualify if the original use of the property commences with the taxpayer after December 31, 2007 and before January 1, 2009 but only if no written binding contract for the acquisition of the property was in effect before December 31, 2007.
Qualifying property is MACRS property that has a recovery period of twenty years or less.
It may not be property that is required to be depreciated under the alternative depreciation system of section 168.

Whether you are buying, building or improving a building, SourceCorp can help maximize your income tax deductions through our in-depth cost segregation service.

There are several advantages in choosing SourceCorp as your Cost Segregation Study provider:

1. SourceCorp: Single-Source Capability
As your single-source Cost Segregation Study provider, we will save your client and your firm both time and money. Choosing one provider that can deliver all the different elements of a Cost Segregation Study – a turn-key approach - is not only more convenient, but is the most cost effective method to streamline the entire process.

2. SourceCorp: Industry Specific Knowledge & Experience
In business since 1983, we draw upon 25-year’s industry expertise from proven real-world experience and can offer unmatched strategic and tactical advice. This long-earned industry knowledge can quickly steer your project in the right direction—minimizing implementation time and maximizing ROI.

3. SourceCorp: Process Orientation
In a successful Cost Segregation solution, understanding the process is as important as supplying effective technological tools. SourceCorp possesses experience in your industry and capabilities related to process orientation providing a winning combination.

4. SourceCorp: Flexibility, Compatibility, and Responsiveness
As an experienced Cost Segregation Study provider, we will track changes and become aware of hidden needs within the project. Armed with this knowledge, we are able to foresee and respond to future issues, providing solutions with minimal disruption to current processes.

5. SourceCorp: A Standardized Approach & Fixed Fee
We provide a standard approach and fixed fee billing. We maintain standardized methodologies, processes and technologies. This way project work is compatible across our entire organization as well as providing the most powerful tools available.

6. SourceCorp: Free Initial Analysis
We build lasting relationships. We will honestly tell you if it is worthwhile to pursue the study at no cost to you.

If you would like to discuss these options further or would like to visit with one of our Cost Segregation Directors, please contact:

Matt Rader
Email: matthew.rader@SourceCorpTax.com
Phone: 817.732.5494, x133

Or you can complete our online information form at:
http://www.sourcecorptax.com/contact/contact_srcp.htm

We look forward to being of service.