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by: Edited Press Release
February 27 2009, Article # 13691
The 2009 Stimulus Act signed into law by President Barack Obama contains provisions that impact the horse industry, the American Horse Council said in a Feb. 24 memorandum.
The measure contains the bigger write-off for horses and other property purchased and placed in service during 2009, the AHC said. The benefits were part of 2008 tax stimulus legislation, but they expired at the end of 2008.
Here is an overview of what the Stimulus Act does:
The first incentive allows an owner who purchases a horse or other business property and places it in service in 2009 to expense up to $250,000 of the cost. The "Section 179" expensing allowance applies to horses, farm equipment, and most other depreciable property.
Once total purchases of horses and other eligible property reach $800,000, the expense allowance goes down one dollar for each dollar spent over $800,000.