The US government is getting ready to pay for your next piece of equipment
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The US government is getting ready to pay for your next piece of equipment
The US government is getting ready to pay for your next piece of equipment
That is right. The President said the two sweetest words a small business owner can hear....."Economic Stimulus"
Essentially, the Federal Government will give you money, either before or after the fact, to purchase capital equipment.
Look for the following
Unrestricted Tax Credits: This is a dollar for dollar reduction of your tax liability. Much better than a deduction because the government pays for the purchase of your equipment. The money that you would have paid in taxes now goes into your shop to earn more money. You can even spend more than your tax liability and get a refund on the overage.
Restricted Tax Credits: Like the former, this one is dollar for dollar but you cannot get a refund for going over your tax liability.
Accelerated Depreciation: Think Section 179. Look for bonus percents from 20% to 50%. This may come in two forms. A general form for everyone and 'Enterprise Zone' bonuses for highly impacted areas like The Peoples Republic of California.
Now, because the government is in a rush to do this, it is certain there will be two additional aspects to this bill.
There will be a ton of pork in it as Congress slips in all kinds of extras
There will be unintended consequences, aka loopholes. This is where a good tax accountant comes in.
Good luck and watch the news for the passage and signing of your government relieve for small business package soon.
Re: The US government is getting ready to pay for your next piece of equipment
Quote:
Originally Posted by binki
Essentially, the Federal Government will give you money, either before or after the fact, to purchase capital equipment.
And by "Federal Government" you mean our grandchildren, great-grandchildren, etc. It's not like the federal government has a surplus of money to hand out.
I haven't heard anyone mention corresponding budget cuts.
Re: The US government is getting ready to pay for your next piece of equipment
Quote:
Originally Posted by AustinJeff
And by "Federal Government" you mean our grandchildren, great-grandchildren, etc. It's not like the federal government has a surplus of money to hand out.
No, I mean my money that I have been handing over year after year.
Re: The US government is getting ready to pay for your next piece of equipment
President Bush yesterday said he wants "direct and rapid" tax relief for individuals and tax incentives for businesses "to make major investments in their enterprises this year."
Re: The US government is getting ready to pay for your next piece of equipment
Quote:
Originally Posted by binki
That is right. The President said the two sweetest words a small business owner can hear....."Economic Stimulus"
Essentially, the Federal Government will give you money, either before or after the fact, to purchase capital equipment.
Look for the following
Unrestricted Tax Credits: This is a dollar for dollar reduction of your tax liability. Much better than a deduction because the government pays for the purchase of your equipment. The money that you would have paid in taxes now goes into your shop to earn more money. You can even spend more than your tax liability and get a refund on the overage.
Restricted Tax Credits: Like the former, this one is dollar for dollar but you cannot get a refund for going over your tax liability.
Accelerated Depreciation: Think Section 179. Look for bonus percents from 20% to 50%. This may come in two forms. A general form for everyone and 'Enterprise Zone' bonuses for highly impacted areas like The Peoples Republic of California.
Now, because the government is in a rush to do this, it is certain there will be two additional aspects to this bill.
There will be a ton of pork in it as Congress slips in all kinds of extras
There will be unintended consequences, aka loopholes. This is where a good tax accountant comes in.
Good luck and watch the news for the passage and signing of your government relieve for small business package soon.
I'm know you can't give me tax advice, but let me see if I can understand what you're saying.
There are currently unrestricted tax credits in place for buying new equipment?
So if I bought a DTG this year (2008), I could take it off of my tax liability in 2008 (or 2007)?
If this is the case, I need to talk to my accountant lady I'm all for reducing my tax liability.
Re: The US government is getting ready to pay for your next piece of equipment
Not quite Rodney. I am spelling out the options that the government has for business. They are not going to send checks to businesses. I do not hold out hope for tax credits, but you never know. This will be hastily put together and is destined to create advantageous loopholes for 2008.
Re: The US government is getting ready to pay for your next piece of equipment
Here is an update
People (phaseout starts at 75K for single and 150K for married)
Single gets $600
Married gets $1200
$300 per head on kids
Business
50% bonus writeoff on capital purchases (probably section 179 depreciation)
Other
Conforming loans in California raised to $725K which will qualify for lower rates, right now 1% lower, below 6% as of this week
Of course the news reports don't have the fine details. If the business deduction is a tax credit then jump on it. You will be taking money that you would already pay in taxes and shift them to equipment purchases. If it is a 50% bonus on accelerated depreciation, then unless you already are above the max of $125K + COLA then it is meaningless.
Re: The US government is getting ready to pay for your next piece of equipment
You have to have money to buy equipment first in order to expense it later.
I just don't have any money to buy anything right now. Hard times are already upon some of us. Maybe I can borrow money from my brother-in-law?
This is a discussion about The US government is getting ready to pay for your next piece of equipment that was posted in the Business and Finance section of the forums.
The US government is getting ready to pay for your next piece of equipment 
I'm all for reducing my tax liability.
See my newest "Holloweeny" Font @ 
... "you can't take the sky from me"
Re: The US government is getting ready to pay for your next piece of equipment 
