Tuesday, March 11, 2008

The Cost of Stimulation

The IRS will begin mailing out letters to about 130 million taxpayers this month. The cost to mail out these letters that simply notify taxpayers that they will receive a check in May is $42 million. I wonder who is paying for these letters to be mailed. It seems there may be other ways these funds could be used.

So what to do with your rebate check? The best bet is to invest it and not spend it. The stimulus bill also includes some tax breaks for small businesses. One of the more important breaks for small businesses is the double section 179 expensing limit for 2008 (allowing a write-off of up $250K) for equipment purchases. Be sure to speak to your tax advisor on the benefits of this change and remember tax planning is done year-round…tax time is too late.

Keeping Your Business N Synergy

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