May 2008: A Note from Jeff Mack
Recession Busters

Are you taking advantage of all the money the federal government is trying to put back in your pocket? Are you aware of HR Bill 5140 (Economic Stimulus Act 2008) and what it can mean to you? Here’s what Fortune Small Business had to say about it:

“The key addition affecting small businesses is an expansion of bonus depreciation which allows investments in tangible property, computer software, or improvements to leased property to be more speedily depreciated, adding to a business tax savings. Businesses of all sizes will be allowed to depreciate in this tax year 50% of the cost of an asset put into use in 2008.”

Here's some of what you need to know:

Economic Stimulus Act 2008 - Key Points

• The asset must be purchased and placed into service in 2008.
• The 168(K) allowance is the bonus depreciation segment that specifically allows a 50% bonus depreciation adder during the asset’s first year in service.
• The Section 179 Depreciation Deduction has been amended to allow an increased deduction from $125K to $250K. This means that you can immediately deduct the value of the purchase (up to $250K) as a business expense and thus pocket the resulting income tax savings. Even if you are in the lowest income tax bracket of 15%, that results in up to a $37,500 savings thanks to Uncle Sam. The one caveat is that you must purchase less than $810K in total qualifying assets during the year.

So whether you elect to depreciate or to expense, our friends in Congress have made sure you win!

Attractive Purchase Options to Help Your Cash Flow
Another winning strategy is to take advantage of our attractive flexible purchase options that essentially allow you to rent-to-own your next system purchase. Here are some choices:

• No payments for the first 90 days
• Pay only $99 for the first 6 months
• Bundle all your hardware, software, service, and maintenance investments into a single monthly payment

We’re working hard to bust the recession blues. Give us a call at 425-820-6120 to see how we can provide an option that meets your needs.