As part of Job Growth and Reconciliation Act of 2003, one-year deduction amount was increased from $25,000 to $100,000. The 100,000 figure will be adjusted for inflation each year, which means it will continue to increase. This is very good news.

What Property Qualifies?

You can deduct cost of following property under Section 179:

1. Machinery and equipment 2. Furniture and fixtures 3. Computer software.

You must elect Section 179. It is not automatically given to you. Simply fill out IRS Form 4562 and attach to returns for business.

In Closing

As shocking as this will sound, government should be applauded for expanding Section 179. Small businesses are burdened by too many regulations and mandatory costs. The expansion of Section 179 is a nice piece of tax relief legislation. Let’s hope more is on way.

4. Customer service ·What services does your firm offer? ·How accessible will you (the agent) be? ·Will you review funds last 5 to 10year performance in prospectus? ·What has been your year-to-year investment performance? ·What was you worst year? Best year? And why? (Look for defensiveness or humility after raising this question, it reveals personality type) ·Do you offer financial planning, money management or both?

In conclusion, a financial planner works for you, and should be compatible with your personality, risk tolerance and financial goals. Make sure that your hard earn money is in good hands. Interview potential planners, ask for references and call at least 3 of those references.

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