Mar 4 2008
While many Americans have heard that a new tax change, signed by President Bush, addresses a refund check to taxpayers, what they may not realize is that there is another provision which benefits business owners as well.
For 2008, taxpayers may immediately deduct up to $128,000 of software and other personal property costs in the year of acquisition. This results in a tax savings of up to $51K from placing software and related consulting into service.
Abba J. Blum, CPA, an Officer in Aronson & Company Real Estate Industry Services Group, commented, "For many businesses, this change will really allow them to reap the money-saving rewards of successful technology implementation. At the same time, the government benefits from stimulating the economy by helping companies grow their taxable business income. It's a win-win scenario."
This gives many organizations, such as construction companies, developers, commercial contractors and others, a unique, one-time, opportunity to make software investments to streamline their back office. Many companies are finding that the provision for annual depreciation deductions of the cost of certain property used for the production of income is all the incentive that they need.
These are major tax advantages for small to mid-sized businesses and Aronson Technology Services (ATS), a service group of Rockville, Md.-based Aronson & Company, is offering companies a free evaluation that of their individual business model to see if they qualify to take advantage of these benefits and to demonstrate how technology can help companies further increase their bottom line.
ATS has developed a unique service strategy, bringing together a wide variety of industry-specific products and services that work in tandem to help companies in the construction and real estate industries thrive and succeed. With diverse, in-house expertise, we are able to address all of our clients' needs. We have provided assurance, tax, and consulting services to the construction and real estate industries since our inception and it is with this depth of knowledge that we are able to assist companies throughout all stages of the process.