Is your company replacing PCs with Macs or upgrading its computer system? Instead of trashing or recycling old computers and peripherals, your company can take an enhanced write-off by donating the equipment to certain nonprofit organizations.
Strategy: Give used computer equipment to an elementary or secondary school (or a supporting charity) or a public library. With this type of gift, an employer may deduct an amount equal to its basis in the property, plus one-half the ordinary income that would have been realized if the equipment had been sold (up to twice the amount of its basis).
Only C corporations qualify for this special write-off. Plus, you must donate the equipment within three years of acquiring it for its original use or completing the manufacture of the donated property.
Tip: This deduction is scheduled to expire after 2007, but it’s already been extended several times in the past.
- Small Business Tax Deduction Strategies No matches