Congress Passes Section 179 Increases

Congress Passes Section 179 Increases
We've all heard about the impact of the Economic Stimulus
Plan on individual taxpayers, but not as much information
has been reported by the media regarding its effect on
small business. To stimulate a sluggish economy, Congress
has included in HR5140 a provision for nearly $50 billion
dollars in business tax cuts. This temporary change to the
tax code will allow American businesses to buy new
equipment this year with financial incentives designed to
expand inventories and create new jobs while dramatically
lowering their taxes.

What's In It for Me?

Understanding the business impact of HR5140 will allow you
to take full advantage of the benefits associated with it.
How does the act affect your business? Last year IRS
Section 179 allowed a business that spent less than
$500,000 on qualified tangible property to deduct the total
cost of those assets, up to $125,000. While this was an
attractive incentive, the Economic Stimulus Act of 2008 is
even more attractive. You may now deduct up to $250,000 for
equipment purchased in 2008. This means that a business
placing less than $800,000 of equipment in service this
year would immediately be able to deduct up to $250,000 of
its investment.

Section 179, But Better!

The expansion of Section 179 by the stimulus plan has
effectively doubled the amount of the deductions allowed
for new equipment. In addition, the Act generally permits a
bonus first-year depreciation deduction of 50% for
qualifying property acquired and put in service after
December 31, 2007 and before January 1, 2009. This bonus is
in addition to normal first-year depreciation. To reflect
the new special depreciation allowance, the IRS is
currently developing a new version of the depreciation and
amortization form for fiscal year filers. The new form will
be designated as the 2007 Form 4562-FY.

Equipment Financing and Leasing

If you have been considering adding equipment for your
business, now is the time to act. Qualified equipment is
defined in IRS Publication 946 and includes such common and
movable tangible property as copiers, fax machines,
computers, printers, some vehicles, office furniture, and
even off-the-shelf computer software. If you've been
thinking of expanding your fleet of vehicles, for example,
now is an excellent time to do that. Or perhaps you need to
upgrade your computers and your software. Equipment Finance
companies can provide the financing or leasing structure
you need so that you can quickly take advantage of the
newly offered tax deductions and bonuses.

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Assess your equipment needs, and then use this free Section
179 Calculator
http://www.Section179.org/section_179_calculator.html to
figure your costs and your savings resulting from the
Economic Stimulus Plan. This information offers you a
personal look at what the new legislation means to your
business specifically. To take advantage of this free
information, go to http://www.Section179.org

Five Credit Card Rules to Live By

Five Credit Card Rules to Live By
Whether you're a seasoned credit card pro or someone who's
new to the world of plastic, there are five rules you'd do
well to remember. After all, credit cards can make or break
your credit rating. You don't want it to be the latter.
With that in mind, here are five credit card rules to live
by...

1. On Time Every Time

Think one late payment won't hurt? Think paying a day late
can't harm your credit card situation? Think again. One
late payment and your credit card company can hit you with
the "universal default" rate (usually about 30 percent)
instead of the great rate you signed up for.

Even if you don't get hit with a higher interest rate as
punishment for that late payment, you will end up paying a
late fee. Unless you want to pay $30 because you paid your
credit card a day late, I suggest paying on time every time.

2. Read The ToS

The ToS (Terms of Service) that is sent with your credit
card is not simply paper padding to protect the thin piece
of plastic as it goes through the mail. It's actually
important reading. It tells you what your grace period is,
what your interest rate is, what the default interest rate
is and other important information.

It's a pain in the rear. The print is small and the
material isn't exactly exciting, but you are obligated to
read these Terms of Service. The minute you use your credit
card, you are agreeing to them. Technically, the ToS can
say "you give us the right to your first born child" and if
you didn't read them, you'd never know.

3. Stay True

Jumping from one card to another to take advantage of their
teaser rates may sound like a good idea, but if you close
accounts once you do so you're actually hurting your credit
rating. Part of your credit score is determined by the
length of the relationships you have with your creditors.
If you're maxing your credit card relationships out at six
months, your score is going to take a hit.

4. All or Nothing

A credit limit is not a license to spend. If you have a
credit limit of $5,000 it doesn't mean you should go out
and max out your card. Only spend as much as you can pay
off in any given month. If you can't pay your bill in full
at the end of the month, you're going to be paying interest
and that's not a good thing. Bottom line - don't charge
more than you can pay off unless it's a dire emergency.

5. Know Your Cards

Almost all credit cards come with some type of perk.
Whether it's as basic as online account management or as
extravagant as 24/7 concierge service, know exactly what
your credit card offers and take advantage of these perks.

And there you have it... Five credit card rules to live by.
The credit card game can be a confusing one, and many have
played and failed. Fortunately, many more have played to
win. Put yourself in the winner's circle by playing by
these five credit card rules.

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For more tips on credit cards, saving money and avoiding
getting taken, check out CreditCardWhizKid.com, a website
that specializes in providing credit card tips, advice and
resources.
http://www.creditcardwhizkid.com