Change is on the Way

President Obama and Congress are now well on their way to making the first in what will certainly turn out to be a long list of changes to try and turn the economy around. Even as the President signs his $900 Billion Economic Stimulus Act, Congress is busy putting together changes to the tax code that will affect us all, some more than others. It now looks like the 50% Bonus depreciation will return for 2009 and we now expect the limits on deductions for new equipment purchases under IRS Code Section 179 to be increased back to $250,000, also for 2009. These changes should be signed into law by mid-February and will likely be retroactive to the beginning of the year. There are several additional changes that will affect those with adjusted gross incomes of less than $100,000. Those are too numerous to go into here, but contact us if you have any questions about those. We will keep you informed of the major changes as they become a part of the President’s stimulus plan.