Buy Equipment Soon

Problem:

As part of the economic stimuluspackage that passed last year, the USCongress quadrupled the amount oftotal business equipment expenses youcan write off in the same year ratherthan let depreciate over time. Before thechange, you could expense up to$25,000 of what you pay for new equipment,furniture, or computer software;the new tax law bumped that amount upto $100,000. Indexed for inflation, themaximum deduction is now $102,000.A Section 179 deduction, named afterthe tax code section that permits it, letsyou immediately expense the cost ofequipment that you normally wouldhave to depreciate over several years.The sun will set on this beefed-updeduction in 2006, when the maximumamount will sink back to $25,000,so you need to plan your purchases forthe balance of 2004 or for next year.Talk to your tax professional now aboutthis tax advantage.