The Section 179 expensing option limit was increased to $250,000 for new business assets purchased in 2008

The full $250,000 first-year deduction can be taken as long as the total cost of eligible business assets purchased and put into service during 2008 does not exceed $800,000 -- above that limit, the allowed first-year write-off will gradually phase out

New business assets purchased and put into service during 2008 are also eligible for 50% first-year depreciation, which can be taken IN ADDITION to the Section 179 write-off

NOTE: Only assets purchased new are eligible for the 50% bonus depreciation, while the Section 179 option can be claimed when used assets are purchased

A Section 179 deduction can only be claimed if a business is otherwise profitable, and only to the extent of that profit, while the 50% "Bonus" depreciation can create a net business loss

A business may claim a Section 179 expensing deduction, 50% "bonus" depreciation AND the regular first-year depreciation allowed under the MACRS tables on the same business asset