Now is the time of year for you look at your financial picture and how you can minimize your tax liability for 2008. Section 179 is a great tool to that has been enhanced with the economic stimulus act to make sure you can keep more of what you earn. If you're not familiar with the financial advantages of Section 179, pay attention: this is a secret the Rich use to maximize their wealth.  

For example, you have a small backyard bouncing company and made $10,000. In addition, your wife and you both have full time jobs making $90,000 together. This gives you a combined total of $100,000 in income. Congratulations! On every dollar you earn in your bouncer company beyond the $10,000 you will be paying 42% tax, and if you live in a state with tax that could be around 50%.   

“What 50 cents of every dollar I earn is taxed?” Yes 28% Federal bracket and 14% Fica & Medicare & 8% State. That is why having a tax plan or strategy is important; you can reduce the amount you have to pay. You work hard so why should you pay more than you absolutely have to?       

The easiest plan is utilizing section 179 to save money. This lets you depreciate certain kinds of purchases immediately to give you huge tax savings. If you purchase $20,000 in product right now for next season or to open you indoor facility you can write off that amount against your 2008 tax bill. In this case you would see a savings on your federal tax bill of over $5,000, which doesn’t even include the state. That is a 20% return on your investment.   

Your choice is whether to spend excess money now on inventory to grow your company, or to just hand that money over to the government in April.

Hey, you ask, what if I only make $32,000 between my bouncer company and my job?  Well if you have kids and buy $10,000 of equipment now you could lower your adjusted gross income to qualify for the Earned Income Tax Credit and the government could pay you!

Not only does investing in your company right now save you from handing over that money to the tax man, now is the best time to purchase product from CEC. The summer sale winding down and there are several products at special prices on the outlet board. If you wait too long, those prices are going to shoot back up to standard pricing. And with fuel charge increases, the standard pricing could rise as well.

As always consult your financial advisor to set up your tax plan but hurry up. The CEC summer sale ends soon. Take a look at this link to help you http://www.crestcapital.com/tax_deduction_calculator