Your small business is going to face tax time just like everyone else. So don’t get caught in the tax rush after January 1st when it’s too late to take advantage of the calendar date. Here is a tip to help you soften the tax blow and that are still available to most small businesses.
If you purchased technology or equipment in the 2005 business year, you can take a huge deduction for all or part of the office equipment, furniture, computers up to $102,000 worth of hardware, software and other business purchases. This is all a part of Code section 179. There are some limitations however, you cannot use the rule to generate loss for the business. In other words, you can only deduct as much as was taxable from the business. This type of write-off will be available through 2007. So take advantage of it while it lasts.