ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
20.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Section 179 - 4th Qtr Tax Saving Strategy for Small Business

Author: Sean Marten Author Ranking Blue | Posted: 17-12-2007 | Comments: 0 | Views: 4 | Rating:  (53) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

IRC Section 179 - What is it?
Under the provision of Internal Revenue Code Section 179, a business that spends less than $500,000 this year on qualified tangible property in 2007 may deduct the total cost of those assets, up to $125,000. Input the cost of the equipment that you’re considering in the instant Section 179 Allowance Calculator to find out the potential cash savings.

Designed as an incentive for economic growth for small to medium sized businesses, Section 179 allows you to expense the purchase price of your qualified equipment immediately upon putting it into service. So, you see significant tax savings now, rather than depreciating your newly acquired assets over five or more years.

What Tangible Property Qualifies?
Most new business equipment will fall under the rule of Section 179. Qualified equipment is defined in IRS Publication 946 and includes such common and movable tangible property as all kinds of machinery and equipment, as well as office furniture, computers, printers, software and most vehicles. Used equipment purchased from another party – but not from a company that is also owned by you – can also qualify.

What if I spend more than $500,000?
If your business spends more than $500,000 on business equipment this year, you can still leverage a tax savings. Each dollar over $500,000 you spend, however, reduces the maximum Section 179 deduction by a dollar. For example, if you spend $550,000, your maximum deduction for 2007 would be reduced by $50,000. This still allows you to deduct up to $75,000 of the cost of your new equipment in the first year.

Note: The allowable deduction amount cannot reduce taxable income below zero. The remaining value of your business equipment can still be depreciated over the prescribed recovery period.

What’s the next step toward tax savings?
Action now will ensure the benefits of this tax opportunity to your 2007 business position. Purchase and place into service needed equipment before December 31st to maximize your deductibles.
IRC Section 179 deductions can pave the path to significant tax savings in 2007.

Rate this Article: Current: 5 / 5 stars - 1 vote(s).

Article Source: http://www.articlesbase.com/small-business-articles/section-179-4th-qtr-tax-saving-strategy-for-small-business-284217.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Ready to know more about this important tax strategy? Contact Crest Capital for a free consultation to maximize your equipment investment. Learn about options that can remove financial roadblocks to your 2007 tax savings with a free Online Quote today.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Equipment Financing and the Five Cs of Credit Evaluation
By: Sean Marten | 17/09/2007 | Loans
Equipment financing lenders, as well as banks, use the Five Cs to evaluate loan applications: Character, Credit, Cash Flow, Capacity and Collateral. However, while banks look at small-to-medium size companies from a Fortune 500 perspective, equipment financing companies see applicants from a small business perspective, which highlights a sixth C: Common Sense.

Section 179 - 4th Qtr Tax Saving Strategy for Small Business
By: Sean Marten | 20/12/2007 | Finance
Use the power of available deductions to boost your business's bottom line in 2007. Purchase new or "new to you" used business equipment now. Then place it in service by December 31st to realize exceptional tax savings.

The Benefits of Business Equipment Leasing
By: Bob Newman | 02/01/2008 | Finance
You can tell a newcomer to the business world (or someone without much experience) by the way they start investing in new equipment heedlessly. A veteran (or someone who has a much more experienced business person to guide him) would know that there are times when you can resort to Business Equipment Leasing instead to save on money that could go further when spent on other needs of the business instead.

Congress Passes Section 179 Increases
By: Sean Marten | 16/06/2008 | Finance
We've all heard about the impact of the Economic Stimulus Plan on individual taxpayers, but not as much information has been reported by the media regarding its effect on small business. To stimulate a sluggish economy, Congress has included in HR5140 a provision for nearly $50 billion dollars in business tax cuts.

How Do I Get Commercial Equipment Leasing?
By: Bob Newman | 02/01/2008 | Loans
There are two ways to pursue Commercial Equipment Leasing – either you try to get that loan from a traditional lender like a commercial bank or you pursue loans from non-traditional lenders. The difference is that traditional lenders like a bank will require you to produce evidence of a very good (even excellent) credit score and that you have a history of being a good borrower (meaning, someone who pays loans on time.) In itself, this is not bad since most banks are secure lenders. The problem lies in the fact that if you pursue commercial equipment leasing with your bank, you are actually eating away at your own credit line with the bank.

Big Hairy Audacious Goals (bhag) & the Finance Dilemma!!
By: Steve Hadfield | 08/05/2008 | Loans
This article has been written to encourage those who own businesses to seek out and achieve new business goals. Finance can play a very important part in this process. DO YOU DARE TO DREAM FOR WHAT MIGHT BE POSSIBLE IN YOUR BUSINESS??

When and How to Get Construction Equipment Leasing
By: Bob Newman | 02/01/2008 | Loans
Construction Equipment Leasing is a type of leasing arrangement where a small business owner (like you) would like to get Construction Equipment but at a lower cost than when you buy the Construction Equipment yourself.


By: | 31/12/1969 |

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Small Business Articles

Google Adsense : an Introduction
By: upinder singh negi2 | 18/07/2008
For many people, Google's Adsense publishing program is responsible for their very first taste of an online income. It may be pennies and cents but that first time you look in your account and see a credit is an exciting moment.

How to Improve Business Signs Through Digital Printing
By: Joel Owens | 17/07/2008
Business signs have never been easier to do. Thanks to the advancement of technology, including the development of digital printing. This is the time when you have to exhaust the available resources around you and maximize their potentials to work to your advantage.

Profits of Google Adsense
By: upinder singh negi2 | 17/07/2008
Are you a webmaster who needs funds to keep your website running? Or is your website the only way for you to earn income? Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you.

How You Do Internet Business
By: upinder singh negi2 | 17/07/2008
Internet business mastery is something that can be learned from a mentor. The problem with most of us is we think we know everything by browsing the net and try to do something different than what others do.

Journey of Google Adsense
By: upinder singh negi2 | 17/07/2008
As a blogger, I started creating websites that I found personally interesting to me. I found articles that were fun and interesting and posted them for people to read. After all.. people create blogs so they can share their feelings and aspirations.

Memorial Jewelry: Having Your Departed Loved One Close at Heart Through an Urn Necklace
By: sumeetha Gowda | 17/07/2008
There is now a way to have your departed loved one close to you everyday, thanks to the concept of memorial jewelry. Cremation jewelry, remembrance jewelry, keepsake necklace - whatever everyone else calls it, it practically refers to the same thing. It is a piece of jewelry that holds a small portion of your loved one's cremated remains.

Cremation Urns - Preserving the Memory of Your Loved One Forever
By: sumeetha Gowda | 17/07/2008
Many people who have chosen to cremate their loved one who passed away make the mistake of taking the cremation urns for granted. It is very important to remember that a cremation urn is more than just an ordinary container. It is a container which contains the ashes of your loved one - of what has remained after he or she has gone. It will keep and hold the memory of your loved one alive not only for this lifetime but for many lifetimes after yours.

5 Most Important Point When Placing Google Adsense
By: Praveen Kumarii | 17/07/2008
I have been adding Google Adsense to my websites for a couple of years now with great success. It's amazing how adsense earnings can turn into another significant monthly income stream with little effort on your part.

More from Sean Marten

Congress Passes Section 179 Increases
By: Sean Marten | 16/06/2008 | Finance
We've all heard about the impact of the Economic Stimulus Plan on individual taxpayers, but not as much information has been reported by the media regarding its effect on small business. To stimulate a sluggish economy, Congress has included in HR5140 a provision for nearly $50 billion dollars in business tax cuts.

Taking the Mystery Out of Software Financing and Software Leasing
By: Sean Marten | 21/12/2007 | Finance
The very terms "software leasing" and "software financing" are confusing to many businesspeople. This is due to the fact that software is typically not seen as something that is purchased over time. But times are changing.

Section 179 - 4th Qtr Tax Saving Strategy for Small Business
By: Sean Marten | 20/12/2007 | Finance
Use the power of available deductions to boost your business's bottom line in 2007. Purchase new or "new to you" used business equipment now. Then place it in service by December 31st to realize exceptional tax savings.

Equipment Dealers - You're Still not Quoting a Monthly Payment?
By: Sean Marten | 13/12/2007 | Finance
Your competitors are offering quotes to customers who could be buying from you. Don't lose these sales! Statistics prove that 80% of prospects who plan to finance equipment will accept your monthly payment option.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below