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    4 Replies Latest reply on Mar 1, 2009 5:44 PM by ccsigndude

    Should I invest in equipment in Dec 08 or January 09.

    MrKrabs Newbie

      The 2008 stimulus package allows 100% depreciation of equipment in 2008 for Tax benefit.

      Let's say the total equipment cost is $20k.
      If I started business in November 2008 and so far only had $2k
      in revenue in 2008, would it be beneficial to depreciate 100%?

      Or is it better to wait till January 2009 and take the standard
      depreciation (or a possible extension of Bonus in the expected Obama
      stimulus package)?
      I there is no tax benefit in buying equipment in 08 but if the equipment is
      needed urgently, is it possible to start regular depreciation in 09, or
      if there is a new bonus in 09, would it be possible to take it in 09
      even though equipment is paid for and intalled in 08?

      For example, if I were to purchase the equipment in 08 on a personal credit card, then transfer it to business (LLC taxed as individual), can I start full cost depreciation in 2009?