Home Back Issues February 2009 Tax law changes will impact 2008 returns

Tax law changes will impact 2008 returns

| Print |  Email
Archives - February 2009
Sunday, February 01, 2009

The taxman cometh in just a few short months, and though you probably won’t have to declare the pennies on your eyes, as George Harrison once advised, several key changes in tax laws are definitely worth knowing about in advance of April 15.


“There were so many tax acts this past year, so education is a big part of what we’ll be doing with our clients,” says Daniel Monaghan Jr., senior tax manager at the Portland accounting firm Perkins & Co.

Two major federal laws, the Economic Stimulus Act of 2008 and the Emergency Economic Stabilization Act, each came with several tax provisions that will impact 2008 returns.

The first increased the Section 179 deduction for new equipment put into service in 2008 from $125,000 to $250,000. The cap on equipment spending covered by the deduction was also raised for 2008 from $500,000 to $800,000.

Monaghan notes that businesses that don’t qualify for the Section 179 deduction are eligible for a 2008-only bonus depreciation, through which they can write off 50% of the cost of equipment and then depreciate the other 50%.

The second new law, aka “the bailout,” extended several business tax provisions that were set to expire. Among them, the depreciation timeline for qualified leasehold improvements made by, for instance, a tenant renting office space.

In the past, those improvements have been depreciated over 39 years, but that was temporarily changed for 2007 — and now extended through 2009 — to 15 years.

In addition, the bailout made changes that are in effect for the 2009 tax year, including extending a research and development tax credit and allowing employers to provide up to $240 to employees who commute by bike. It also eliminated restrictions so that more businesses can qualify for a 30% tax credit on solar power installations; in Oregon, businesses are also eligible for a credit of up to 50% of the cost of a solar project over five years.

This year also will bring a tax break to Portland businesses in the form of a reconfigured business license tax, which will now be paid at the end of each year instead of in advance.

As for what else 2009 — and the new Obama administration — may bring in terms of taxes, Monaghan says the new president’s campaign was heavy on tax reform, but until anything becomes law, there’s little point in speculating.

“We don’t trust anything until the president signs it,” he says.

JON BELL




Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

More Articles

Downtime with Ron Green

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

Ron Green became president and CEO of Oregon Pacific Bank in August 2013.


Read more...

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...

How to help your staff solve their own problems

Contributed Blogs
Friday, March 21, 2014
03.21.14 thumb coxcoffeeTOM COX | OB BLOGGER

During a recent talk to HR Directors, I asked if they saw leaders trying to solve every problem, instead of delegating to and empowering staff. Every head nodded. Every single one.


Read more...

Making faces

News
Thursday, February 20, 2014
02.20.14 Thumbnail ModelsBY VIVIAN MCINERNY | OB BLOGGER

As retailers consolidate and newspapers fold, the business of modeling shifts to ad agencies, apparel companies and new media.


Read more...

Fuel's gold

March 2014
Tuesday, February 25, 2014
BY SOPHIA BENNETT

The coastal town of Coos Bay appears poised to land every economic development director’s dream: a single employer that will bring hundreds of family-wage jobs and millions in tax revenue. 


Read more...

Wheel man

March 2014
Tuesday, February 25, 2014
BY LINDA BAKER

Les Schwab has put a premium on customer service since 1952, when legendary namesake Les Schwab founded the company with one store in Prineville. (Schwab died in 2007.) But if the corporate principles remain essentially the same, the world around this iconic Oregon business has changed dramatically.


Read more...

The 2014 List: The Top 33 Large Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS