Saturday, August 08, 2009

Small business tax break for business equipment

For those small business owners that need to purchase equipment here are the details of the tax law passed earlier this year.

The law extended the $250,000 limit for the first-year
expensing of new or used equipment purchased for use in
your business. This deduction is gradually phased out
once you purchase more than $800,000 of equipment in
2009.

In addition, brand new equipment, software, and
qualified leasehold improvements can qualify for 50%
bonus depreciation if placed in service by the end of
2009.

The two benefits can be combined on the same purchase.
For example, you can use the expensing option on a
piece of equipment and apply bonus depreciation to the
remaining cost if the property qualifies.

Be sure to speak to your tax advisor to ensure your property qualifies.

Keeping Your Business N Synergy
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