| Use the power of available deductions to boost | | | | owned by you ' can also qualify. |
| your business's bottom line in 2007. Purchase new | | | | What if I spend more than $500,000? If your |
| or "new to you" used business equipment now. | | | | business spends more than $500,000 on business |
| Then place it in service by December 31st to | | | | equipment this year, you can still leverage a tax |
| realize exceptional tax savings. | | | | savings. Each dollar over $500,000 you spend, |
| IRC Section 179 - What is it? Under the provision | | | | however, reduces the maximum Section 179 |
| of Internal Revenue Code Section 179, a business | | | | deduction by a dollar. For example, if you spend |
| that spends less than $500,000 this year on | | | | $550,000, your maximum deduction for 2007 |
| qualified tangible property in 2007 may deduct the | | | | would be reduced by $50,000. This still allows you |
| total cost of those assets, up to $125,000. Input | | | | to deduct up to $75,000 of the cost of your new |
| the cost of the equipment that you're considering | | | | equipment in the first year. |
| in the instant Section 179 Allowance Calculator to | | | | Note: The allowable deduction amount cannot |
| find out the potential cash savings. | | | | reduce taxable income below zero. The remaining |
| Designed as an incentive for economic growth for | | | | value of your business equipment can still be |
| small to medium sized businesses, Section 179 | | | | depreciated over the prescribed recovery period. |
| allows you to expense the purchase price of your | | | | According to the latest Small Business Research |
| qualified equipment immediately upon putting it into | | | | Board study, "Taxes were the leading concern of |
| service. So, you see significant tax savings now, | | | | business owners during the second quarter of |
| rather than depreciating your newly acquired | | | | 2007 replacing health care." And since taxes weigh |
| assets over five or more years. | | | | so heavily, it is logical for business owners to |
| What Tangible Property Qualifies? Most new | | | | attempt to ease their tax burden. Which is where |
| business equipment will fall under the rule of | | | | section 179 comes into play. |
| Section 179. Qualified equipment is defined in IRS | | | | What's the next step toward tax savings? Action |
| Publication 946 and includes such common and | | | | now will ensure the benefits of this tax |
| movable tangible property as all kinds of | | | | opportunity to your 2007 business position. |
| machinery and equipment, as well as office | | | | Purchase and place into service needed equipment |
| furniture, computers, printers, software and most | | | | before December 31st to maximize your |
| vehicles. Used equipment purchased from another | | | | deductibles. IRC Section 179 deductions can pave |
| party ' but not from a company that is also | | | | the path to significant tax savings in 2007. |