As at the start of any new year, businesses are inundated with a load of new local, state and federal laws to sift through. Here are just a few tax law changes that may impact your business:
Increased section 179 limits. The maximum section 179 deduction you can elect for property you placed in service in 2007 is increased to $112,000 for qualified section 179 property. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $450,000.
Standard Mileage Rate. For 2007, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck is increased to 48.5 cents a mile for business miles driven.
Qualified Transportation Fringe Benefit. For taxable years beginning in 2007, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $110. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $215.
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