We’ve got less than six weeks until the end of the fiscal year, so make sure you’re taking full advantage of the tax privileges and extensions afforded for 2009.
Buy a new car. Buy a new passenger auto or light truck for your business and you’ll see a bigger depreciation deduction (except for SUVs and pickups). The first-year depreciation deduction for new cars is $10,960 and $11,060 for light trucks if they’re used 100% for business.
Buy expensive equipment. In tax talk, that’s the Section 179 deduction. In everyday, let’s-save some money language, it means you can write off up to $250,000 in small business assets from 2008 through 2009. Right now the deduction is immediate as opposed to over several years, as the rule previously allowed. Think: computers, printers, office furniture, etc. Don’t think: real estate or construction. Note: In order to qualify, your business must break even or profit on the 2009 tax return after deducting.
Carry back and forward of your Net Operating Losses (NOLs). Take advantage of the recessionary support the government is kindly offering businesses during these trying times. Companies of varying sizes and those covering a variety of industries can “carry back” the losses they sustained anytime in 2008 and 2009 against money made during the previous five years.
So yes, your business is privy to putting off payment and spending more money.