2009 American Recovery Act Means BIG Savings for Business

UPDATE: The American Recovery and Reinvestment Tax Act of 2009

The American Recovery and Reinvestment Tax Act of 2009, signed into law by President Obama on February 17,2009, generally extends the 50-percent first-year bonus depreciation deduction on qualifying property through 2009. Qualifying property, which may be acquired or constructed, is generally defined in section 168(k) as property that meets all of the following requirements:

The property has a recovery period of 20 years or less.

The original use of the property must commence with the taxpayer.

The property must be acquired by the taxpayer after December 31,2007, and placed in service prior to January 1,2010, and no written binding contract to acquire the property may have been in effect prior to January 1,2008.

Property that is constructed by the taxper has the same construction start and in-service date requirements as acquired property; however there is a safe harbor provision for self-constructed assets if less than ten percent of the total construction cost is incurred prior to January 1,2008.

Internal Revenue Service - United States Department of the Treasury

To Our Valued Customers:

The American Recovery and Reinvestment Tax Act of 2009 Provides Significant Tax Benefits to Busineses!

Washington - February 17, 2009

The American Recovery and Reinvestment Tax Act of 2009 (ARRA) signed into law by President Obama, generally extends the 50% first-year bonus depreciation deduction on qualifying property through 2009

Extending bonus depreciation through 2009 presents immediate cost segregation opportunities. Engineering-based cost segregation analyses can be performed on newly-constructed facilities, as well as additions and tenants improvements to existing facilities. In most types of buildings, the cost segregation benefits can be significant! An immediate deduction of 50% of an asset’s basis coupled with a shorter life on the remaining basis can provide increased cash flow benefits in the first year as well as net present value benefits over the life of the asset. To qualify, installations mus be completed by January 1, 2010!

BENEFITS

Lower taxes during year 1 - increase first year depreciation for new purchases with a 50% bonus. Ask us to show you how much using our calculator tool.
Accelerates cash flows - more cash available to spend on your core business.
Improves return on assets - get the majority of the investment off your (tax) books sooner, with the major portion written off in year 1.
Advantage of modular architecture (walls) vs. fixed architecture - get assets off the books in 7 years vs. 40 years, with major portion written off in year 1
Financing for improved cash flow - by combining accelerated depreciation with new promotional financing rates, you can acquire a new work environment with very little or no cash outlay in the first year.

For more details and eligibility requirements, please vist www.depreciationbonus.org

_{U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included in this communication was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties. In addition, no one may use any part of this communication to promote, market or recommend an arrangement to any taxpayer relating to Federal taxes.}

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