President Bush's 2007 budget proposal includes some much needed tax relief for small businesses: the opportunity to write off up to $200,000 a year in expenditures on big ticket items. According to a recent USA Today article, Congress is debating extending the current maximum, $100,000, until 2009. Bush is also pushing to make his write-off proposal permanent.
After the last write-off boost in 2003, when the write off rose to $100,000, many small businesses made significant capital expenditures, including purchasing expensive SUVs. But there's some skepticism as to how many small businesses the $200,000 write off would benefit. Many very small businesses don't make $100,000 in capital expenditures during the year. Still the write off increase is seen as a positive step by the Bush Administration for lessening the tax burden on small businesses, which has become an issue of concern to many business owners. How beneficial would a $200,000 write off to your business?