Help me understand this
Ok, so I’m a fairly new business owner, and quite inexperienced. But articles about the expected economy-boosting tax rebates really perplex me:
The rebates, expected to go out in June, would cost about $100 billion, aides said. The package also includes close to $50 billion in business tax cuts.
The package would allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and permit small businesses to write off additional purchases of equipment.
“Write off 50 percent of purchases of plants and other capital equipment”? What the heck does that mean? Do businesses usually purchase giant plants, or are they talking about potted plants? Is everyone out there buying plant facilities? Am I missing something? And are plants considered “capital equipment”? Will I have to buy a factory to get the savings?
I’d like to think that this means potted plants because the EPA wants businesses to think green. I could use a couple of potted plants for my little office.
If I kill them, do I get a 100 percent write off?
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Beth on 24 Jan 2008 at 1:45 pm #
Ha! I’m not the only one…
Moments ago someone searched Google for “purchase of plants 50% write off.” I was the first result listed.
See? No one knows what it means….
Claire (Little Miss) on 24 Jan 2008 at 2:17 pm #
It might not mean plants of the gardening variety, but plants and in manufacturing plants, bottling plants, and such. Not that I’m certain, I’m only guessing. I don’t know anything about that tax initiative either, but I’m going to research it now. It will probably lead me back to you. LOL.
D.J. on 25 Jan 2008 at 4:11 am #
Beth,
I am a business owner, and have been for over 15 years, so I know something about write offs. First, you pay for a good CPA, let him or her worry about he percentage. Its worth the money you pay them every year.
Second, pay for all of what you need in cash. Save the receipt for the CPA.
On a more personal note, it is true, I do come home on Sunday. This, of course, was a business trip. Discussed business with as many people as possible.
I will let the CPA worry about the percentage.
I truly cannot wait to continue my stroll down Ave. Z after beein gone for 2 weeks. Im hoping I am welcome back.
D.J.
p.s.
I tried to write every day.