Monday, November 5, 2012

Disaster Preparation and Tax Deductions

Some questions you may ask wake of Hurricane Sandy:
  • Can we combine disaster preparation and tax planning?  The answer is YES.
  • How?  One way, if you are a business,  is by accelerating assets/equipment purchased for disaster prevention into 2012. A business  may be able to take advantage of the tax favorable bonus depreciation rules that were extended through 2012 for qualified equipment placed in purchased by December 31, 2012.
  • Businesses can write off half of the cost of qualifying assets put in service this year, a portable generator would definitely qualify... if it was new (original use) when purchased.  
  • Businesses can also expense up to $139,000 of assets put in use by 2012.
Taking advantage of these equipment write offs (some of which expire at year-end) are some of the quickest ways to get prepared for the next event from mother nature and get a tax deduction at the same time.

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