Savings bond tax deferral strategy
will end August 31
June 2004
Don’t let time slip
away and lose out on a big 2004 tax break for your business.
If you’re planning
to purchase equipment, be aware of these two depreciation rules: You can
expense $102,000 worth of new or used equipment purchased for your
business this year, and you can take 50% bonus depreciation on new
equipment purchases.
You can use both
breaks in the same year, and the two benefits can even be combined on
the same purchase. For example, you can use the expensing option on a
piece of equipment and apply bonus depreciation to the remaining cost if
the property qualifies.
Off-the-shelf
computer software qualifies for both tax breaks.
As you plan your
acquisitions, remember that the 50% bonus depreciation is slated to end
this year, while the increased expensing election runs through 2005.
Also, the expensing benefit phases out once your total equipment
purchases for 2004 exceed $410,000.
For details and
help in best utilizing these tax breaks, give us a call.
Return to 2004 Tax Tips
