As tax seasons begins, many business owners are on the hunt for new tax deductions.
The IRS recently released 11 important changes affecting business tax returns for 2008. In an effort to stimulate business growth, the Section 179 depreciation allowance for business equipment or property has been expanded for the 2008 tax year only. Business owners can write off up to $250,000 in qualified purchases, double the amount in 2007. In addition, purchases can total up to $800,000 in all (up from $500,000) without reducing first-year depreciation write-off.
Changes were also made to employer-owned life insurance contracts, S corporations and mileage rates.
Source: Entrepreneur.com, New Tax Tips for Businesses