Thinking of Buying a New Truck This Year?
If you are thinking of buying a new truck, This year may be the time. The government is providing an incentive. The Economic Stimulus Act of 2008 ups the depreciation provision for new truck purchases in 2008 from 30 percent to 50 percent.
This will effectively reduce a buyer’s 2008 federal tax liability by thousands of dollars for new trucks purchased during the year. Navistar Truck Group has developed a web site to learn more and share information about the benefits of this new law at www.InternationalTrucks.com
To qualify under this new depreciation schedule, the new truck purchase must satisfy the following rules:
1. The truck must have a recovery period of 20 years or less under normal tax depreciation rules
2. The original use of the truck must commence with the taxpayer seeking to claim the deduction
3. The truck generally must be acquired during 2008 and no written binding contract for the acquisition must have been in effect before 2008
4. The truck must be placed into service during 2008 (or, in certain limited cases, 2009)
If a new truck purchase meets these requirements, the owner is entitled to deduct 50 percent of the adjusted basis of the property in 2008. The remaining 50 percent of the adjusted basis of the property is depreciated over the ordinary tax depreciation schedule. Some financing tips are available here.
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