"We
can't cross a bridge until we come to it; but I always like to lay down
a pontoon ahead of time." -Bernard M. Baruch
It's almost year-end, and while most of us are
still scratching our heads wondering how the year went by so
quickly, accountants are getting ready because year-end means
that tax time is just around the corner. The good news
is that there are things you can still do this year to maximize your
2006 tax planning. Always talk to a
tax professional first because every company's situation is
different and there may be tax savings that are more suitable for
your particular company.
Section 179 is a nice benefit for businesses-
especially nice for small businesses. Section 179 allows
companies to deduct the full cost of eligible business
equipment on the 2006 return, as opposed to spreading it
across several tax years. For 2006, a business is able to expense
up to $108,000 in capital expenditures provided the total purchase
amount is under $430,000. Eligible property includes machinery,
equipment, furniture and fixtures, most storage facilities, and
single-purpose agricultural or horticultural structures.
The main goal of year-end tax planning is to
increase expenses and delay income. Buy any needed equipment now.
Expensing equipment cuts your adjusted gross income, lowering your tax
liability. You can also pay bills like rent, insurance, and
utilities early and stock up on office supplies.
If you haven't set up a retirement plan yet,
now is the time to do so. Qualified plans must be
established by December 31 in order to provide deductions for this
year. This is a great way to lower your taxes and protect some of
your income.
As this time of year is the season of
giving, don't forget to be charitable. An individual can
write-off between 20-50% of their adjusted gross income. Corporations
can write-off of up to 10% of their taxable income. Just
remember the IRS requires a written receipt for any donation of $250 or
more.
First Star Capital is a
national leader in all types of equipment financing and leasing.
We operate in all 50 states and are currently offering some of the most
competitive programs in the country. Our transactions are
funded both internally with private label lines of credit as well as
externally with some of the most competitive & flexible funding
partners in the nation. These diverse funding resources allow First
Star the flexibility to undertake a variety of transactions. Nothing is
too big or too complex.
For more
information, contact Brad Harmon at First Star Capital (800-604-4817).
First Star
Capital...Tomorrow's Growth Today
The
information and content provided is general in nature and is for
informational purposes only. This information is provided as a
convenience to you , and First Star Capital makes no warranties and
bears no liability for your use of this information.
