My NAWBO newsletter came in and there were two tax-related points that interested me and which I thought would be of interest for other women business owners.
1) 50% Bonus Depreciation: allows American businesses that buy new equipment this year to deduct an additional 50 percent of the cost of their investment in 2008.
2) Increased Section 179 Expensing: means that a business placing less than $800,000 worth of equipment into service this year would be able to immediately deduct up to $250,000—up from $128,000—of its investment in 2008.
If this is a year of expansion or you've been considering investing in equipment, now would be a good time to take that expense. For example, if you've been leasing equipment or you need to increase your output with a more efficient machine, these rulings will assist you this year.
And of course, here is a list of my favorite business expenses that you'll want to take, if applicable (always ask your tax person for specific advice regarding your situation)
daycare assistance for employee
auto expenses (for company-owned cars/trucks)
membership dues for business organizations
books and magazines directly relevant to your industry
transit passes or parking expenses
company meal plan or business meals with clients
If you have your tax forms available, you might want to check out the IRS's rebate calculator to see how you personally will benefit from the "Economic Stimulus Package": http://www.irs.gov/app/espc/
If you're in business, now might also be a good time to plan when you'll offer a "Rebate Check" sale or some other way to encourage consumers to buy with you (when they receive their rebate)!
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