Small Business Tech Tips

The American Recovery and Reinvestment Act (ARRA) has some good stuff in it for small businesses. You should work with your accountant to come up with a plan for your business as we head into the second half of 2009.

Here are a few of the high points:

• The ARRA extends the 50% bonus depreciation created in 2008 until the end of 2009. This means that businesses making capital investments (computer systems!) can take and immediate 50% depreciation for their taxes.

• Businesses can write off up to $250,000 on total purchases up to $800,000, that’s up from $125,000 with a phaseout at $500,000 in 2007.

• Net operating losses can be carried back five years, instead of the usual two-year period. This applies to companies with average receipts of up to $15 million.

While these figures alone may not make or break your business in the next year, they can provide some nice tax savings and potentially help free up some cash for investing in new projects or creating more of a cushion.

Mike Cooch
CEO
Everon Technology Services, LLC

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This entry was posted on Wednesday, May 27th, 2009 at 6:20 am and is filed under Small Business Management Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.