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The new economic stimulus law signed by the president on Feb. 17—the American Recovery and Reinvestment Act of 2009—gives small business owners a second chance at a “one-time” tax-saving opportunity.

Strategy: Buy assets like equipment and computers needed for your business. The new law revives the enhanced Section 179 deduction and “bonus depreciation” tax breaks that officially expired after 2008.

These two tax goodies can be combined so that your small business can write off most, if not all, of the cost of new assets placed in service this year.

Here’s a quick review of this unique one-two tax punch.

1. Section 179 deduction: Under Section 179 of the tax code, a business can currently deduct the cost of assets placed in service during the year up to a maximum amount. The deduction phases out for purchases above a specified threshold. A 2008 law doubled the maximum deduction to $250,000, with an $800,000 thresh...(register to read more)

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