Friday, January 8, 2010

Reduce Your Taxes in 2010!!

Most new business equipment can be either depreciated over its useful life, but with Section 179, you can take that deduction all in one year!  In 2010 - the maximum deduction amount is $134,000.   Don't delay - it is scheduled to be reduced to $25,000 for 2011.

What does this mean for you?

Let's assume you are in a 35% tax bracket and you make these purchases in 2010:
- $20,000 for a barn
- $7,500 in fencing, other property prep, equipment
- $50,000 in alpacas -
         - 8 breeding pregnant females for $5,000 per female
         - 4 companion animals for $250 per animal
         - 1 llama for guarding $500
         - 1 herdsire for $2,500
         - 1 proven herdsire for $6,000
Total - $77,500
Deduction $27,125

Price you actual paid for the animals and equipment:  $50,375

The government has wasted so much of our money and taxes are crazy, especially in NJ!!  Why not let them partially fund your next business venture!

Best part is that the animals pay for themselves with their fiber and pay you dividends in terms of babies year after year.

They can be fully insured against mortality and theft!

Interested in learning more?  Drop me a line and lets chat!

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