Oops . . . made a mistake on last entry

In the prior blog entry there is reference to the most recent tax law regarding bonus depreciation.  It was stated that the 50% bonus depreciation was extended through 2010.  That was an error . . . here is the corrected info:

A 100% writeoff in the placed-in-service year of the cost of property eligible for bonus depreciation under Code Sec. 168(k) . This will apply for property acquired and placed in service after Sept. 8, 2010, and before Jan. 1, 2012.

A 50% bonus first-year depreciation allowance under Code Sec. 168(k) for property placed in service after Dec. 31, 2011, and before Jan. 1, 2013.

So bottom line, Bonus Depreciation is going to be around through the end of 2012.  Now that is a planning opportunity.  And remember . . . there are no offset limitations to bonus depreciation . . . it can offset earned income, interest, dividends, pensions, rental income, capital gains . . . any kind of income.  The only stipulations . . . the assets must be NEW and placed in service by the end of the year to be eligible as a deduction for that year.  A new alpaca is a male or female of breeding age who has not yet produced a cria.
 
Sorry for the error . . . but what great news!

Expanded Tax Deductions + Great Sales Prices = Exceptional Year End Opportunity

Just the basics for this entry. The IRS has expanded the Section 179 Deduction available for 2010 and 2011 to $500,000 with a purchase ceiling of $2,000,000. They have also extended the 50% bonus depreciation through 2010. Both of those deductions make year end buying a great tax strategy.

When you couple those deductions with our year end sale, you have an opportunity to maximize your tax deductions while getting exceptional values. Select any alpaca on our sales list and get the second one for free (of equal or lesser value). For example, if you were to select Bella (list price $7,750) and Chloe ($6,750) you would get them both for $7,750.

So start pondering your tax situation and pick out the alpacas that will enhance and or diversify your breeding program.  Just make your decision by midnight on December 31st for it to apply to 2010.