ATLANTIC HIGHLANDS – June, 2008 – Small business owners who raced to file their company’s taxes last month might recoil from the thought of planning for next year’s marathon. But they will be tempted by two new deductions, as the corporate headquarter of Business Broker’s Network, Dallas, has determined.
“We will notice a significant increase in cash flow due to significantly increased depreciation deductions”, says Achim Neumann, President of A Neumann & Associates, LLC, representing Business Broker’s Network in New Jersey.
According to the tax experts of the national network, the section 179 deductions have nearly doubled for certain companies, which will allow businesses to deduct up front rather than depreciate over time the costs of certain kinds of equipment. In addition, the bonus depreciation provision allows businesses of any size to depreciate fifty percent of the equipment cost, with the balance to be depreciated according to IRS rules. “Taking advantage of both provisions would mean a huge tax savings for 2008”, says Neumann, ”more information can be found on the IRS Website.”