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Let the Economic Stimulus Act and
Section 179 Help You
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.
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
www.Section179.org.
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