New Depreciation Rules

General Real Estate Investing
1

Revenue Procedure 2008-54 provides guidance regarding the increased amount of section 179 expensing provided by the Economic Stimulus Act of 2008 (Act), and how the new rules interact with the increased amount of section 179 expensing for the GO Zone and the Kansas disaster area. The revenue procedure also provides guidance regarding the 50% additional first year depreciation provided by the Act, and how the new rules interact with the 50% additional first year depreciation deduction provided for the GO Zone and the Kansas disaster area. Finally, the revenue procedure changes certain procedures for making a section 179 election.

Revenue Procedure 2008-54 will appear IN IRB 2008-38, dated September 22, 2008.

http://www.irs.gov/pub/irs-drop/rp-08-54.pdf

2

What the heck?!

Translation, please!

Furnishedowner

3

New rules for Section 179 depreciation.

4

Do you think they’ll offer some kind of new tax break in response to Hurricane Ike, just like they did with GO Zone and Katrina?

5

Probably. Give your senator or congressman a call.

6

BLL,

I just re-read this. Could you tell us what Section 179 expensing and depreciation is? What kind of property?

Thanks, Furnsihedowner

7

It allows you to accelerate the depreciation or expense normally depreciable items. You pay less taxes in the early years because paper expenses are higher.

8

Section 179 deductions are primarily intended for business equipment and are not permitted for rental property.