You've probably read that President Bush and Congressional leaders have agreed on a $150 billion stimulus package to prop up the economy and help prevent a recession. News reports have focused on tax rebates for individuals. But you may not realize that the package includes generous incentives for buying business equipment as well.
Want more cash in your pocket? The bill reduces the 10% federal tax bracket to zero for 2008 -- then delivers the savings now in the form of rebates ranging up to $600 for unmarried individuals, $1,200 for married couples, and $300 per child up to a maximum of $600. This break phases out for incomes above $75,000 ($150,000 for joint filers).
If you are in business the bill also gives you a 50% bonus depreciation deduction for new equipment you buy for your business in 2008. It raises the Section 179 first-year expensing limit from $125,000 to $250,000. And it doubles the phaseout for Section 179 deductions from $400,000 to $800,000. This is great news if you're planning to buy vehicles or equipment for you business, or even to renovate business premises.
What you probably care about is how much money you will be getting back in May. Click on the following link to access examples of rebate amounts as caclulated from the taxpayer's 2007 tax return: Examples of Rebate Determination
Here is a calculator that will estimate the rebate you will be receiving from the government: Rebate Calculator
Want more cash in your pocket? The bill reduces the 10% federal tax bracket to zero for 2008 -- then delivers the savings now in the form of rebates ranging up to $600 for unmarried individuals, $1,200 for married couples, and $300 per child up to a maximum of $600. This break phases out for incomes above $75,000 ($150,000 for joint filers).
If you are in business the bill also gives you a 50% bonus depreciation deduction for new equipment you buy for your business in 2008. It raises the Section 179 first-year expensing limit from $125,000 to $250,000. And it doubles the phaseout for Section 179 deductions from $400,000 to $800,000. This is great news if you're planning to buy vehicles or equipment for you business, or even to renovate business premises.
What you probably care about is how much money you will be getting back in May. Click on the following link to access examples of rebate amounts as caclulated from the taxpayer's 2007 tax return: Examples of Rebate Determination
Here is a calculator that will estimate the rebate you will be receiving from the government: Rebate Calculator
