Schwinn 131 User Manual download pdf (Page 31)

Business Management”

Are you aware of the remarkable cash flow

improvement and tax strategies that are available to

help you fund your practices growth?

Private practitioners and some corporate entities may

take advantage of the following programs:

Jobs and Growth reconciliation act of 2003

In a nutshell, the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA)

permits business’ to immediately expense and deduct up to $108,000 in capital

purchases a year (dollar amount for 2008 will be indexed for inflation). Previous to

passage, the maximum was $25,000. The tax law continues through calendar year

2009.

Let’s examine what this means to you in real dollars. Example does not consider

additional state tax deductions!!

Calendar year 2007

Income $350,000

Maximum allowable capital purchase deduction $108,000

Tax saving on income reduced by $108,000 (35% Fed) $37,800

Maximum same year tax savings under old law $8,750

Net same year savings $29,050

Leased equipment qualifies as well! For example, a $60,000 lease, even though

amortized and paid over five years, will qualify for a $60,000 same year tax

deduction (provided there is a buyout at the end of the lease)!

If you are considering expansion, updating older equipment, starting a new

practice, or just trying to reduce income, NOW is the time to buy.

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Schwinn 131 User Manual Page 31