100% write-offs

Recent federal legislation [section 179] allows certain classes of assets to be fully depreciated in 1 year. They include personal property such as office furniture, computers, etc. Up to $108,000 can be written off in 1 year!

This cap is linked to the amount of qualifying property being purchased, and reduces as the total exceeds $430,000. Not normally an issue for small businesses >grin<.

In 2010 that deduction limit is expected to fall back to pre-legislation values of $25,000, so this is still a good planning tool for financial forecasting and revenue modeling.

Typically you'll want your deductions applied to higher taxed income whenever possible. So if you can wipe out employment taxes [15.3%] as well as income taxes [say 25%] that would be better than just creating a Net Operating Loss. As always, consult with your tax professional to make sure that your plans maximize the benefits that you will receive.

oops - the dragonflies are out again - I'll see if I can catch one this time.

Until later then, Smokey says bye.