Take
Advantage of IRC Section 179 Now!
Now is the time to take advantage
of significant tax deductions when acquiring new business
communications technology under IRC Section 179. BTS Technologies, Inc. is placing special emphasis on Section
179 because the deductions may change under the new administration in 2009.
Section
179 of the Jobs and Growth Tax Relief Reconciliation Act was specifically
designed to give businesses the ability to increase their spending on new
equipment and generate growth in order to stimulate the economy.
Unfortunately, many companies are
not aware of these substantial deductions and how it applies to their
business. We believe it is our
job as our customers’ strategic business partner to educate them on
Section 179 and give them the information so they can determine whether to
take advantage of it in 2008.
On February 13th,
President Bush raised the deduction limit under IRC Section 179 to $250,000.
Business taxpayers may generally
elect to take an outright deduction of up to $250,000 of the cost of
equipment placed in service during a tax year.
If the aggregate cost of qualifying equipment placed in service
during the tax year is greater than $800,000, then the deduction is reduced
by $1 for each dollar by which the aggregate cost exceeds $800,000.
For qualifying assets, the cost of which has not been deducted under
Section 179, the remaining cost of the equipment is then depreciable in
accordance with the ordinary tax depreciation rules.
Since
February, businesses have been experiencing a tremendous push with these new
changes. Those companies that are aware of the deductions are scrambling to
ensure they are taking the appropriate steps, because it means hard dollars
going directly to their bottom line. Surprisingly, many companies have
either never heard of the law or don’t know how to take advantage of it.
During
these uncertain economic times, companies must continue to change the way
they conduct business and invest in technology or they will not be around
much longer. These deductions
give businesses of all sizes the ability to do just that.
Many organizations haven’t made a change to their voice and data
technology in quite sometime and the latest advancements have an amazing
impact on profitability and productivity.
Now,
is the time for every organization to take a hard look at implementing new
technology that will help them weather the ups and downs that our economy is
likely to experience over the coming months.
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