Tax & Accounting

This Week's Tip

Year-end is approaching fast, and you could use a sizable tax deduction.  You will need to purchase certain new equipment early next year.  It could make sense to purchase the equipment now and put it into use before year-end.  Up to $250,000 (2008 only) can be deducted in a single year under Section 179 for purchases of equipment that would otherwise be depreciated over a period of 5 or 7 years.  There are limitations, such as the limitation of the amount to the total taxable income of that particular business.  And remember, the equipment must be put into use – not just purchased.