28 Apr, 2010 | Posted by: photosource
SMALL BUSINESSES GET FASTER WRITE-OFFS
WITH FIRST-YEAR EXPENSING DEDUCTIONS.
There are two ways for small businesses to write off their outlays for equipment purchases
such as computers and file cabinets. One is to use the "standard" route to recover the cost through depreciation deductions over a period of years. The other is the often-overlooked tactic of "expensing" authorized by Internal Revenue Code Section 179. It allows them to deduct the entire cost of the equipment in the year of purchase. The immediate write-off and resulting tax trimming benefits businesses battered by the recession.
Let’s say equipment purchases include $10,000 for computers, copiers and the like. Instead of depreciating that equipment over five years, they can be immediately expensed. A $10,000 write-off lowers taxes by $3,000 for individuals in a top federal and state bracket of 30 percent.
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Julian Block,an attorney in Larchmont, NY, has been cited as a "leading tax professional" (New York Times), "an accomplished writer on taxes" (Wall Street Journal) and “an authority on tax planning” (Financial Planning Magazine). His books include “Tax Tips For Small Businesses: Savvy Ways For Stock Photographers, Artists and Other Freelancers To Trim Taxes To The Legal Minimum,” praised by law professor James E. Maule of Villanova University as "An easy-to-read and well-organized explanation of the tax rules. Business owners would be well advised to buy this book." To order his books, visit www.julianblocktaxexpert.com
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Tax Expert - 30 Apr, 2010 - 12:01:19