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Angus Hines
11-20-2008, 5:55 PM
I have noticed several people waiting to make big Equipment purchase till next year. But I just saw this on the ShopBot site and thought I'd share it over here.
So for some it may be better to make those purchase this year while we still have some advantages to do so.

This was cut and pasted directly from the site spelling errors and all.


2008 Economic Stimulus Act


Many of us have helpful checks coming, but the Economic Stimulus Act also provides for attractive bonus depreciations that may be relevant to ShopBot Business purchasers. Of primary interest is the enhancement to Section 179 Expensing which allows businesses to deduct the cost of certain purchases including equipment as an expense during the purchases firt year of service instead of spreading the depreciation over several years. In 2007, the amount that could be treated in this manner was $128,000. In 2008 this amount has been increased to $250,000.
Of course, don't take this as the final word for your situation without consulting your accountant or tax advisor.

Jim Becker
11-20-2008, 8:02 PM
If you are in the woodworking business (and I do mean business), it's important to discuss any planned purchasing with your CPA "now" because there are a number of tax ramifications and benefits to small businesses for equipment acquisitions before the end of your tax year. Only you and your business financial adviser can look at your options to choose what is the best timing for your particular business. The ability to take equipment purchase deductions, within certain limits, in a single year has been around for a bit and is definitely worth checking out if you need to adjust the equipment in your shop and business.