Even the brains of the most astute Arizona business principals can lock up when they are trying to conjure up and implement money-smart ways to increase an enterprise’s worth and future prospects through necessary capital expenditures.
One reason for that has for many years centrally related to the government’s unquestionably complex rules regarding the depreciation of newly purchased assets and equipment. A business owner has historically been allowed to write down the value of an asset, but only over time, and figuring things out and then accurately accounting to the Internal Revenue Service has been a sorely difficult task for legions of company executives. In some instances, it has led to government challenges and litigation.
In fact, and for a number of reasons, a recent media article discussing company purchases and asset depreciation calls the exactions that have long been placed on business owners “headache-inducing.”
That same article also notes that the migraines might abate somewhat for many small- and medium-sized business principals going forward, given the recent enactment of federal legislation that now offers their companies a new and simplified depreciation process.
Its bottom line: If assets qualify for treatment under what is termed a “Section 179 deduction,” (that is, if their aggregate purchase price did not exceed $500,000), a business owner will able to write off the entire purchase amount in the same year that the asset was purchased.
That will certainly make things simpler — and potentially more cost-effective — for many smaller businesses that pulled the trigger on asset purchases, given that they will no longer need to devote significant amounts of time and attention to successive-year depreciation schedules.
An Arizona business principal or entrepreneur with any question regarding company planning or growth — including queries on tax and related matters — can secure guidance and, when necessary, diligent legal representation from an experienced Phoenix commercial law attorney.
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.