The federal government has made it more attractive to purchase commercial trucks in 2008. The Economic Stimulus Act of 2008 increases the depreciation provision for new truck purchases in 2008 from 30 percent to 50 percent.
This “bonus depreciation” will reduce a buyer’s 2008 federal business tax liability by thousands of dollars for each new truck placed into service during the year. Navistar Truck Group has developed an online destination to learn more and share information about the benefits of this new law at www.internationaltrucks.com/taxsavings.
“Our commitment to the customers doesn’t end when they drive their International truck off of the dealer’s lot,” says Dee Kapur, president of Warrenville, Ill.-based Navistar Truck Group. “We think of ourselves as a business partner for our customers, not only making sure their trucks are properly spec’d and continually serviced, but providing them with any additional support they need to succeed.”
Learning more about the bonus depreciation could help truck customers generate more cash flow in 2008. To qualify for bonus depreciation, the new truck purchase must satisfy the following four criteria:
If a new truck purchase meets these requirements, the owner is entitled to deduct 50 percent of the adjusted basis of the property in 2008. The remaining 50 percent of the adjusted basis of the property is depreciated over the ordinary tax depreciation schedule.
