Monday, November 29, 2010

Time to buy new equipment

It may be time to buy new equipment before 2010 comes to a close. The benefit of doing so is that one-hundred percent of your purchases this year (up to a maximum of $500,000) can be expensed. This means you can subtract the amount of money for the whole tax year instead of over several years. This is one of the new tax incentives for small businesses, according to IRS Section 179.

Qualifying purchases could be computers, servers, and accessories. While it is unknown what tax codes will look like in 2011, now seems to be a smart time to make a purchase. The current tax code is definitely appealing due to the dramatic increase in the amount to be written off.

To find out if your desired items are eligible and learn more, CMIT Solutions is here to help. We can assist with making recommendations and we suggest that you also consult with your tax professional.

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