IRS Announces 2009 Standard Mileage Rates
Sunday, January 4th, 2009
IRS Announces 2009 Standard Mileage RatesCPA Serving Atlanta GA & Beyond |
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IRS Announces 2009 Standard Mileage RatesCPA Serving Atlanta GA & Beyond |
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Section 179 Depreciation…Being Sure you Maximize Your Depreciation Deduction
Depreciation and all of its attendant rules are difficult for both the professional and laymen alike. Sifting through this maze of the tax code is a tenuous task. Perhaps there is no more important section of the tax code to consider when preparing your annual income tax return than the deduction for Section 179 depreciation. Whether you are a S Corporation, LLC, LLP, C Corporation, Partnership or proprietorship this one of the best deductions around and if used and claimed properly can do much to mitigate your current year tax bill. Section 179 depreciation has been around for decades in varying forms and limits. The law is intended to allow business owners to deduct in full, up to prescribed limits, the amount of fixed assets such as furniture, fixtures, computers, and office equipment the year that is purchased. Generally speaking this deduction does not apply to the purchase of fixed assets such a land, buildings, or passenger vehicles. Not only will this deduction help you mitigate your own tax bill but it will also stimulates the economy by encouraging the purchase of capital equipment.
In 2007 the Section 179 limit is $125,000 for most business and individuals and $160,000 if you are in a Qualified Enterprise Zone or for Renewable Community Property. The limit for business was originally set to increase for 2008 to $128,000 (as the amount is indexed annually for inflation), however the maximum amount was increased to $250,000 as a provision of the 2008 Economic Stimulus Act. The maximum limitations apply both at the corporate and personal level meaning that a single business or an individual taxpayer are limited to the maximum amount for that year. Proper tax planning should occur each and every tax year to ensure that all deductions are maximized to the full extent possible while being appropriately cautious about impacts on future year taxes. Section 179 tax elections and amounts claimed are also limited to a ceiling of a business’s profits for the year (i.e. they cannot exceed that years business profits for the maximum IRS set limit for the year). Any unused credits call be rolled forward to future qualifying years. Working with your CPA is the best way to ensure that you always pay only your lowest legally possible tax.
Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.HisCPA.com
At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”
We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.
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