Our October issue of Tax Tips newsletter was mailed earlier this week! This newsletter is sent to current tax and records clients, if you would like to be added to the mailing list for future editions please contact your local office. We anticipate sending this out quarterly. Below is an excerpt from the newsletter, to read the whole thing click here.
Year End Tax Planning Strategies
by Michael Moloney, EA - Senior Records and Tax Specialist
As we approach the end of another year, we thought it would be a good time to talk about some of the yearend tax planning strategies available. Remember that having up to date records is a key part of the tax planning process.
Section 179 Expensing: For 2008 the Section 179 deduction has been increased to $250,000 with a purchase limit of $800,000. In other words if you have purchased more than $800,000 in qualifying property, the deduction phases out dollar for dollar on the amount over the limit. Qualifying property is “tangible personal property” (i.e. cattle, machinery and equipment, and single purpose buildings) placed in service and available for use by December 31, 2008.
For the 2009 tax year the Section 179 limit returns to the $125,000 amount (indexed for inflation) that was in effect for 2007.
For further assistance, please feel free to call a Financial Services Representative at your local office.
