TAX TIPS FOR ELECTRICIANS:   :   :           Stuart A. Sinclair, CPA  (516) 935-2086

You should know that 2008 is a good year to purchase a new vehicle.  This is because the tax depreciation on vehicles has been liberalized.  For a business passenger car bought in 2008, the taxpayer gets a standard depreciation of $2,960 plus a 50% additional depreciation of $10,960 for the first year of use.  In the second year, the taxpayer gets depreciation of $4,800 plus additional depreciation of $4,800.  The third year generates $2,850 plus an additional $2,850.  The subsequent years generate $1,775 plus $1,775 for each year of use.  The deductions for SUV’s weighing at least 6,000 pounds is even better.  The first year you would deduct 50% of the cost of the vehicle, then another $25,000 (section 179), and any remaining cost would be depreciated over a 5-year period. 

In 2007, the auto depreciation was only $3,060 first year, $4,900 second year, $2,850 third year and $1775 subsequent year.  It is a very big increase in the auto depreciation deduction.

As always, we recommend that any questions regarding accounting or taxes be directed to Stuart.

HAPPY BIRTHDAY:   :  

Happy Birthday to—May!

George Alevas, Steve Baader, Anthony Baldino, Russell Calemmo, Edward Camm, Russell Castaldo, John Corcoran, Richard Dowd, Joseph Ettlinger, Lee Eysman, William Federer Jr., Matthew Filosa, Cyril Forde, Greg Herth, Rod Jara, James Jarvis, Nicholas Kerzner, John Krut, Chris Lorenzen, Robert Meany, Tim Poturny, Robert Prisco, Edward Reiff, Edward Sheridan, Richard Sisto, Michael Smith, John E. Sullivan, Jr., Steve J. Sussmann, Chris Tomczyk, Roger Urce, Henry Zaporta. 

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