| With the current news that is all around us it is sometimes hard to justify opening our pocketbooks and investing in our companies. We all know that the best way to improve ourselves and our businesses is to invest time, energy and money in accomplishing our goals. As the year draws to a close take a look and see what can be done to improve your business. The decision to improve may save you money. |
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With the changes to the Section 179 Deduction made by the Economic Stimulus Act signed in February 2008 there are some exciting benefits for business.
At a basic level, Section 179 is a tax incentive for businesses to deduct the full amount of the purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income, up to a limit. It's an incentive created by the US Government to encourage businesses to buy equipment and invest in themselves.
The Economic Stimulus Act of 2008 - HR 5140 helps small business by improving the limits of the Section 179 Deduction.
- One provision substantially increases the amount that small businesses can deduct for certain capital equipment expenditures from $128,000 to $250,000.
- A second provision allows for bonus depreciation in 2008 on certain capital equipment expenditures purchased this year that would normally be depreciated over many years.
Section 179 can change yearly without notice, so it benefits you to take advantage of this generous tax code while it’s available. Section 179 offers small businesses a great opportunity to maximize their purchasing power. In addition, the Economic Stimulus Act of 2008 has provided the small business owner with generous new (and higher) deduction limits. Most of the equipment your business will purchase or lease qualifies for the deduction, so do your homework and verify that your company is leveraging the Section 179 Deduction this year.
Of course, we recommend you speak with your tax advisor on how these provisions can benefit you directly.
For more information online including a Section 179 Deduction calculator and a list of qualifying equipment visit Section179.org.
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