Years ago, a mentor told me to do my own taxes as long as possible. In doing so, he explained I would have an understanding of tax policy that exceeded most people. This would allow for better tax and investment planning and, perhaps, better political decisions. So, rather than use H&R Block, I read the IRS forms and booklets. I invested in my annual Ernst & Young Tax Guides and I learned a lot. Over time I developed both a love and hate for the tax season. I didn’t mind writing the check each year (I was told never give the government your money interest free for a year) but the time it took to prepare steadily increased. That is until, Turbo Tax. I didn’t trust the initial product and would check it by hand. After a couple of returns, I discontinued my quality control effort and began to make note of each year’s changes in the tax code as before. However, last night, for the first time, I could not do my taxes. My IBM laptop of 2003 finally ran out of memory and processing power to run Turbo Tax. But what does this have to do with you?
It may be too late for some of you but make sure to speak with either your accountant or tax preparer about deductions for your IP PBX purchased last year. You may qualify for a deduction under Section 44 or Section 179 of the Tax code. The first acknowledges that an IP PBX can support improved communications access for disabled persons. The second is focused on supporting SMB’s investment in new equipment and an IP PBX usually qualifies. Under Section 179, business that spend less than $2,000,000 a year on qualified equipment can deduct up to $500,000 in 2011. The Small Business Jobs Act recently passed by Congress extends this bonus depreciation through 2012. There are conditions but if your business qualifies, it will be worth the research. See, studying and comprehending the tax code can be beneficial.
I am retiring my 2003 vintage IBM Laptop. Therefore, my taxing decision for 2012 will be to determine what new laptop to purchase. Any ideas?