[AZTLANLC]

I was just talking with my accountant and she informed that this year the goverment will allow up to 100,000 write off for the purchase of new equipment, maybe you all know it already but I just wanted to coment on this.

Now, where the heck I'll come up with 100,000 to spend on equipment?

Well enjoy it big guys.

[Stonehenge]

Speaking of that, I'm sure many of you have heard about the special tax write-off that can be had for purchasing trucks, a category in which SUV's fal, including the Hummer. To that end, Hummer ads around here are even mentioning that people should 'contact their tax advisor about the tax benefits of purchasing a Hummer by year's end'.

Sure, being able to write off a good chunk of a Hummer would be cool, but I still have to come up with the money to pay for it.

[jwholden]

Don't we write off equipment anyway? What special write off is there? Is the government going to double whatever my accountent tells me I should write off?

Isn't the amount we write off on our equipment based on a depreciation schedule?

[Stonehenge]

Not necessarily. Usually, in any given year you can write off up to $18K in new eqpt (at least that's what my accountant told me). But you may be in a situation where you have lots of revenue and are staring at a big tax bill come March 15th 2004. If that is the case, it might be advantageous for you to buy that Hummer you've always wanted, because you could write a big chunk of it off, and save yourself a big tax bill next spring. Whatever was not accounted for in this first big write off would be depreciated at a normal rate the following years (BTW, I'm no accountant - if anyone has contradictory info, please share it here).

[Gill]

I have heard that the Government is allowing better write off when purchasing equipment. Her is what my Accountant says.

If you purchase Equipment or Vehicles in 2003 you can depreciate the total amount this year. The only reason this would help out a business is if the business were going to show a substantial net profit at the end of the year. The purchase and then write off would offset the net profit and save on the amount of tax you will have to pay.

hope this helps you make a decision