The Hiring Incentives to Restore Employment Act

by on 16/12/10 at 12:28 pm

The ‘Hiring Incentives to Restore Employment Act’ of 2010 has recently extended the enhanced Section 179 deductions of 2008 / 2009 into 2010. Congress has also extended the amount that small business may write-off for capital expenditures. This means that businesses can now write-off up to $250,000 of qualified dental equipment and dental management software during the 2010 tax year!

The HIRE act extends “section 179” expensing, a provision that lets businesses deduct as an expense the costs of some property purchases such as vehicles, machinery and computers. Previously, business could write off up to $125,000 in spending on such goods. In 2008, Congress temporarily increased that amount to $250,000. In 2009 the new stimulus extended that higher limit through the 2009 year. Recently, the HIRE act has extended this limit through the 2010 tax year. The provision is aimed at small companies: The deduction is phased out for businesses that spend more than $800,000 on capital expenditures for the year.

The Section 179 deduction, which allows businesses to deduct upfront rather than depreciate over time the costs of certain kinds of equipment, has nearly doubled, rising to $250,000. The bonus depreciation provision allows businesses to depreciate 50% of the cost of equipment, with the balance to be depreciated according to IRS rules. This Means Huge Tax Savings for You.

You can receive the full $250,000 deduction for purchases up to $800,000. After that, the deduction decreases $1 for each dollar over $800,000. How can you take advantage of these huge savings? By getting your orders in early. Any unused portion of the $250,000 is lost opportunity to lower your taxes.

The time is now to save big! Call us today to learn how your practice can benefit from the Economic Stimulus Act. 1-866-815-7606 or click here. Also, stop by our website to use our Tax Calculator and see your potential savings!

Leave a Reply

Your email address will not be published. Required fields are marked *