WhatYou Don’t Know Could Help You by Hector Barreto Administrator, U.S. Small Business Administration (NAPSA)—If yow’re like most people, chances are pretty good you aren’t an expert on the incredibly complicated tax code, including the tax cuts the President has championed, and Congresshas passed. Like many Americans, you may simply be waiting until tax season to ff = find out how much the cuts reduced your 2 tax bill. If, however, Barreto you’re a business owner, you can’t afford to wait that long—because you can, and should, start taking advantage of the tax cuts now. One of the key provisions, designed specifically to help small businesses, in the Jobs and Growth tax cut plan lets businesses deduct a much larger amount than they could in the past for business equipment expenses. The amount a business can deduct has risen from $25,000 to $100,000, thanks to the Jobs and Growthtaxrelief. This means that if you are a business owner, you don’t have to wait on that new piece of equipment that you’ve been thinking of purchasing. Maybe you need new computers, updated software, manufacturing equipment or a new vehicle to make deliveries. Business equipment is expensive, but this tax incentive was designed to help soften that financial blow and encourage businesses to make those investments. Furthermore, the expense of off Small business owners across the country are getting a big help from the government in the form of a tax cut they can use to buy new office equipment. business equipment is immediately deductible, so there is no need to wait until the end of the year to make the investment. Business owners will also be interested to know that the reduc- tion in marginal rates of top incomelevels is likely to affect their bottom line as well. For small businesses that file their business income on individual income tax forms (as the majority of small-business owners do), this rate reduction can be significant. In fact, about two-thirds of those who will benefit from the reduction in the top income tax rate are small-business owners and entrepreneurs. The President designed the Jobs and Growth tax cuts with small businesses in mind. Now it’s time for small businesses to learn more about how they can take advantageof these cuts to grow. More information about how the Jobs and Growth tax cuts can benefit small businesses can be found at http://www.irs.gov/businesses/small.
