If you are making (or are thinking about making) an alpaca purchase – consider this… 2009 is the best year to let Uncle Sam do it for you.
Let me explain…
The Stimulus Act temporarily extends the higher Section 179 expense amounts available in 2008 for an additional year. Under this provision, business owners can elect to immediately expense up to $250,000 of qualified equipment (alpacas qualify as equipment) purchased during the 2009 tax year, rather than depreciate it over time. This benefit will continue to phase-out on a dollar-for-dollar basis once qualified equipment purchases exceed $800,000.
The Stimulus Act also extends availability of the 50% bonus depreciation provision for capital expenditures incurred in 2009. This provision allows business owners to take 50% bonus depreciation in the year that the property is placed in service. In addition, the Stimulus Act extends the placed-in-service deadline for the $8,000 increase in first-year depreciation provision on qualified vehicles placed in service by December 31, 2009.
The current difficult economic situation has likely caused many businesses to incur a net operating loss (NOL) in 2008. Before the Stimulus Act, NOLs could generally be carried back only two years and, if there was a tax liability in those two years, taxes paid could be refunded to the taxpayer. For 2008 NOLs, the Stimulus Act extends the two-year carry-back to three, four, or five years increasing the likelihood, availability, and amount of the refund to enhance the business cash flow.
[The above information is for educational purposes only. This excerpt is from the April 2009 Tax & Business Alert bulletin from the CPA firm of Gish Seiden, LLP in Woodland Hills, CA – 818.854.6100]
Check with your local accountant to see in what ways the Stimulus Act might impact you or your plans to start your alpaca business this year.
Just thought you’d like to know!