Small businesses benefit from Section 179 deduction

Typically, if property for business has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.

But there is a way to immediately receive these income tax benefits in one tax year. The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.

Section 179 allows businesses to deduct the full amount of the purchase price of equipment (up to $250,000). This includes machinery, many vehicles, computers and software, office machines and furnishings, and other tangible equipment. Essentially, the only caveat is the equipment needs to be purchased and put into use during the 2009 calendar year (no later than December 31st 2009).

Last year, Section 179 got a major face lift from the Economic Stimulus Act of 2008. The deduction limits were raised to $250,000 (almost double of previous years), and a "bonus" first year depreciation of 50% was allowed on purchases that exceeded the limit. In 2009, these new, higher limits were kept. This is a definite boost to small and medium sized businesses as they navigate 2009's economic climate.

Section 179 is a key incentive in regards to business spending. This is because when combined with equipment financing or Capital Leases (also known as Non-Tax Leases), Section 179 can actually make buying new equipment profitable for the tax year. This is because the tax savings often exceed the first year's payments (quite common, actually.)

 

Property that may be written off in the tax year of purchase, rather than depreciated over the asset's useful life, includes:

• Machinery and equipment (including ink jet printers)
   
• Furniture and fixtures
• Most storage facilities
• Single-purpose agricultural or horticultural structures

Also, the definition of eligible section 179 property was expanded by the 2003 legislative changes to include off-the-shelf computer software. Previously, it had to be written off over three years.

This article is an adaptation of articles and information originally published by www.Bankrate.com  and from http://www.section179.org.
 

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Tips & Tricks: Finishing Fabric
 

As more and more sign and graphics suppliers look at textiles as a viable product line to help them increase their profit margins and reduce competition questions about finishing fabrics surface.

Sewing is by far the finishing method of choice for many especially when it comes tot he production of flags however it is not the only one.

Hot Knifes are commonly used for a quick and clean finish that does not require advanced skills or expensive equipment. The hot knife will cut and seal the fabric and can be used with a straight edge for clean, straight edges.

Specialty Tapes are available on the market that allow you to fold the edge of the fabric and glue it to the back. Often available with handy tape dispensers, these tapes are quite strong and the finished result looks like a folded seem without the sewing lines.

Iron-On tapes such as Steam-A-Seam are an easy but temporary option ideal for trade show roll-ups and indoor hanging banners and flags.

For more information on choosing the right sewing machine and more information on sewing techniques and related issues click here

Also the Fabric Graphics Association is organizing a Sewing Machine Maintenance and Repair Workshop.