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this seems good but bigger businesses will just abuse it. It was a good idea to limit the dollar amount to 500k. Now all corporations are going to write off 500
by marme 11y ago
this seems good but bigger businesses will just abuse it. It was a good idea to limit the dollar amount to 500k. Now all corporations are going to write off 500k of equipment every year. Possibly even writing off 1 million as they just buy 500k worth of computers write off the purchase then donate the computers to a local school and write off another 500k. This was one of the reasons that the deductions previously was based on the yearly depreciation to prevent companies from just buying new equipment every year to avoid paying taxes
- evanpw 11y ago> Possibly even writing off 1 million as they just buy 500k worth of computers write off the purchase then donate the computers to a local school and write off another 500k. You can't deduct anything for donations of fully depreciated property, so this trick wouldn't be legal. And buying equipment that you have no use for just to avoid taxes wouldn't make any sense, since you're spending $X to save 0.35 * $X in taxes.