Take advantage of temporary tax breaks

   The current scenario surrounding all of us means interest rates are rising, and credit availability is readily tightening up.   Nevertheless, companies still need their equipment to continue running efficiently.   Try to think about the next 6 months to one year to determine what equipment you need and what equipment will be best forthe future of your company - and acquire it now!

   We are in a situation where even if there is an opportunity to pay cash, the smarter option is to finance the equipment, keeping the option open to refinance later.   Take advantage of the low interest rates, the additional depreciation benefit, and the credit availability while it is still possible.    

  One strategy  Global Capital, LTD is telling their customers about is to take advantage of temporary tax breaks with recent increases to Section 179.   You can combine all of the benefits of accelerated write-offs for your equipment purchases provided by these temporary tax breaks.  

   For tax purposes, the IRS Code Section 179 provides accelerated write-offs for capital expenses.   Businesses purchasing $800,000 or less in capital equipment during 2008 can deduct up to $250,000 of that expense immediately on their 2008 tax return. 

   If your 2008 budget requires more than $800,000 in capital equipment investment, you'll need to manage the tax ownership of those assets in order to maintain your Section 179 write-off. 

   Let us know what credit crunches you are experiencing - let's see if we can help provide the educational tools and resources you need to get you through this difficult period.