The tax law changes so often that it's easy to lose track of current
rules. As you make business purchasing decisions in 2005, be aware of
these recent changes.
* 50% bonus depreciation on new equipment purchases is no longer
available.
* The limit on first-year expensing for the purchase of new or used
business equipment increased to $105,000 for 2005.
* If total equipment purchases for the year exceed $420,000, the
$105,000 amount begins to phase out.
* The first-year expensing limit for sport utility vehicles (SUVs)
purchased for business use is $25,000.
This limit applies to vehicles weighing not more than 14,000 pounds.
* For 2005, the depreciation period for qualified leasehold
improvements to commercial real property and qualified restaurant
property is 15 years. Next year, you'll once again have to deduct the
cost of these improvements over 39 years.
For details or assistance with the tax issues affecting business
purchases, contact us.
Return to 2005 Tax Tips
