How A CPA Would Bailout the Auto Industry!!

Forget about writing any checks. I can bailout the auto industry without the government having to write a check.

This is how you do it: Eliminate temporarily for six months the "Listed Property" rules in the Tax Code for domestically manufactured autos . By doing this- every automobile on the dealer lots will be sold instantaneously.

Why? Because the tax savings on these automobiles will be so great that it will allow the purchasers to bankrole the acquisition of autos using tax dollars saved.

For those of you who have no idea what I am talking about- here is the explanation:
During the Ronald Reagan era, to stimulate the economy accelerated depreciation rules were introduced, including the concept of section 179- which is the complete writeoff of an asset within a one year period, even if you acquired the asset by borrowing the money. However, in an effort to prevent abuse of these rules, automobiles were severely limited from these accelerated writeoff benefits. Basically all automobiles are subject to the "Listed Property" rules which severely limits the depreciation deduction a business can take annually on an automobile that has been purchased. That is why so many businesses "lease vs buy" an auto. It does not pay economically to purchase an auto.
With the new Stimulus Act earlier this year the first-year limit on depreciation for passenger automobiles was increased by $8,000. For example if you purchased a passenger auto for over $45,000 (passenger auto is defined as less than 6,000 pounds in gross vehicle weight) during 2008 and used it 100% for business you would be able to expense $10,960 in the first year.
In the 36% federal bracket, this could save you approx $4,000. THIS IS GOOD BUT NOT EARTHSHAKING..

Now imagine if that same taxpayer could writeoff completely the $45,000 in one year.
That would save him over $16,000!!! That is enough savings to cover a full year of payments with no downpayments... NOW THAT IS IMPRESSIVE AND VERY STIMULATING

Want to Stimulate the Econony- TRY THAT>>>

WHAT DO YOU THINK?? Let me know...