Truckers can now count themselves among those who will get tax breaks from the federal government. Post-Sept. 11 reparations are allowing anyone who purchases a truck after Sept. 10, 2001, to receive a bonus depreciation of 30 percent in addition to regular depreciation. The bonus depreciation continues to Sept. 11, 2004.
Trucks, and other qualified business property with a recovery period of less than 20 years, such as certain computer software and water-utility property, are eligible for the allowance if they were placed in service after Sept. 10, 2001.
For example, if a business purchases and starts using a new truck for $100,000 in January 2002, it may take a Section 179 expense deduction of $24,000 as well as the new 30 percent bonus depreciation of $22,800 for 2002. Then, it may take normal first-year depreciation based on the remaining cost of $46,000.
These tax-time cuts, which are meant to stimulate purchases, come from Congress' Job Creation and Worker Assistance Act of 2002, which President Bush signed into law March 9, 2002.
For details, visit www.irs.gov.