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December 8, 2004 10:52 AM

Year-End Tax Planning Moves for Small Businesses


Excerpt: ATTENTION SMALL-BUSINESS OWNERS: Now is not the time to get distracted by the holiday chaos. Time is rapidly running out on your chance to make some savvy tax-saving moves that could slash thousands of dollars off your 2004 small business tax bill.


ATTENTION SMALL-BUSINESS OWNERS: Now is not the time to get distracted by the holiday chaos. Time is rapidly running out on your chance to make some savvy tax-saving moves that could slash thousands of dollars off your 2004 small business tax bill.
So drop the fruitcake and listen up. To take advantage of the generous tax breaks detailed below, you need to take action before the ball drops in Times Square.

1. Load-Up on Equipment and Software
As you probably know, most small businesses are eligible for the "Section 179 deduction." For tax years beginning in 2004, this valuable break allows you to immediately deduct up to $102,000 worth of business equipment as long as it's up and running by year end. That equipment can be new or pre-owned. Business software costs also qualify.

Keep in mind, this is a use-it-or-lose-it deal. You can't roll over any unused Section 179 allowance from this year to next. So the more you spend by year end on business equipment and software, the more you'll save on taxes. However, you need not get too carried away here. Why? Because you'll start off on January 1, 2005, with a brand-new $105,000 Section 179 allowance — thanks to the annual inflation adjustment. (This assumes your business uses the calendar year for tax purposes.)

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Read all 46 posts in the same category of Tax:

Few People Aware Of New State Sales Tax Deduction - Dec 17, 2004
Ownership Has Its Privileges - Dec 12, 2004
Bush Rejects Raising Taxes to Pay for Social Security Plan - Dec 12, 2004
Social Security Reform, With One Big Catch - Dec 12, 2004
Bush Eyes Social Security Threat - Dec 12, 2004
Put Away Your Check Book - Dec 10, 2004
IRS to Issue Rules On Tax Shelters - Dec 09, 2004
Give Tomorrow, Get the Tax Break Today - Dec 08, 2004
2004 Year-End Tax Planning Moves - Dec 08, 2004
CCH Capital Changes Identifies Top Ten Tax-Complex Corporate Actions for 2004 - Dec 07, 2004
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