Volume 1, Issue 5
Table of Contents

Cover Story:
The World is Flat
When it comes to Global business, the view looks good

RBD Round-Up:
RBD is On the Air!
WRCR teams up with RBD Co-publisher for weekly show
RBD Business Survey
Take part in RBD's 1st On-line Business Survey

DEPARTMENTS:

Economics Round-Up
• The Local Economy
Construction industry confidence rebounds, managers predict greater optimism
• The Smart Investor
Investing From Within: The key to becoming a smart investor
• Economic Viewpoint
It All Adds Up: The Fed takes delight in the economic numbers

Business Round-Up
• The Work-Life Minute™
Small business owners need innovation to battle burnout
• Marketing By Design
There Ought'a Be a Law: Marketing is nothing more than long-distance selling

Ask The Experts
• Business Start-ups
Negotiating a lease - from the tenant's view
• Expensing & Depreciation
Tax incentives for small business

Retail Round-Up
• Who's Hiring?
Summer employment program offers benefits to all
• New In Town

Invest in Your Community
• Provident Bank Charitable Foundation
Works to support help from People to People
• Red Cross Celebrates March
Partners with local business people for the good of all

Odds & Ends
• From The Publishers
• Letters to the Editor
• Rockland Newsmakers

Dedicated Section:
Rockland Business Association:

The President’s Desk
The State of the RBA

RBA/United Way Golf Outing
The Rockland Open: Monday, May 21st

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

Q: I own a business. I’ll need to purchase some furniture, fixtures, and equipment for it to enhance productivity. Are there any tax incentives available to encourage me to do so?

A: The Internal Revenue Code, under Section 179, permits you to elect to deduct the purchase price of qualifying property in full, during the year the property is placed in service. Qualifying property does not include real estate or leasehold improvements. The election is an alternative available to the usual depreciation methods which only allow the deduction of a percentage of the cost each year during an item’s useful life.

This election will allow a maximum of $111,000 to be expensed, rather than depreciated, provided that the total amount spent on the new equipment does not exceed $450,000 during 2007. (The amounts for 2006 were $108,000 and $430,000.) There are other limitations that may restrict your eligibility. Additionally, the Federal benefits may not be fully allowed in state or city taxing jurisdictions. IRS Form 4562 is used to make the election to utilize this option.

Q: Additionally, I intend to buy a vehicle. Are there similar tax benefits for this, as well?

A: Vehicle depreciation is somewhat more complicated, due to potential abuse of the rules by taxpayers. Generally, if the vehicle is of the type that is used predominantly for commercial purposes, such as a cargo van or a truck, it would be able to qualify for the full amount of the expense election.

Sport Utility Vehicles weighing in excess of 6,000 pounds gross vehicle weight and used in the active conduct of a trade or business are limited to an expense election of $25,000. Any remaining amount left over after subtracting the $25,000 from the total vehicle cost would be subject to depreciation over the life of the vehicle. RBD

Steven E. D’Alesio is a Certified Public Accountant practicing with Kahn, Hoffman & Hochman, LLP in New City, NY. He may be reached at (845) 634-5300.