[Leica] year end mad dash to spend $$$ or pay taxes on it

[rgacpa at yahoo.com (Bob Adler)]

I think what Reuters is referring to is the section 179 deduction in lieu of 
depreciation. You can deduct the full value of the asset(s) up to $250,000 
in the year of purchase: you don't have to depreciate the asset over its 
useful life (there are exceptions of course; consult your tax preparer).
In 2010 the section 179 deduction is scheduled to be dropped to $25,000.
So buy multiple M9s, MF backs, D3s, lenses, printers, pack mules (I deducted 
my SUV in the year of purchase!), etc.
YMMV,
Bob
 Bob Adler
Palo Alto, CA
http://www.rgaphoto.com




________________________________
From: Jayanand Govindaraj <jayanand at gmail.com>
To: Leica Users Group <lug at leica-users.org>
Sent: Sun, December 27, 2009 7:24:57 PM
Subject: Re: [Leica] year end mad dash to spend $$$ or pay taxes on it

Kyle,
Just remember, in all these depreciation based tax dodges(lease,
investment allowance, etc), the actual effect is that it postpones tax
payment, and does not write it off permanently. This is because if you
get a large depreciation in the first year, you are going to get less
in all subsequent years, and therefore pay more tax in those years. It
is generally an extremely lousy idea to buy an asset based on tax
requirements rather than actual need.  Keep this in mind for any
depreciable asset purchase.
Cheers
Jayanand

On Mon, Dec 28, 2009 at 4:37 AM, Kyle Cassidy <kcassidy at asc.upenn.edu> 
wrote:
>
> Says Reuters: "Although bonus first-year depreciation has been extended a 
> number of times, another lease on life for this tax break may not be in 
> the cards."
>
> Which means it's time to make some business purchases over here at Studio 
> Cassidy. Has anybody else been considering this? What I'd like y'alls 
> advice on -- bang-for-the-buck recommendation is:
>
>
> * Some sort of Leica-like camera system -- I yearn for the days when my 
> whole kit fit in a small bag. I'd coveted an R-D1 for a while but I think 
> the micro 4:3's have killed that desire.
>
>   My thoughts now are:
>
>      Lumix GF1 w/ the pancake lens: 
> http://www.dpreview.com/reviews/PanasonicGF1/ ($1000)
>
>      Canon Powershot G11: http://www.dpreview.com/reviews/canong11/ ($600)
>
>      Leica X1: http://www.dpreview.com/reviews/LeicaX1/ (~$1000)
>
>
> I'm also considering choosing from:
>
> * Upgrading my 85 1.8 and 50 1.8 to the 1.4 versions.  (about $1300 if I 
> keep the old ones -- $900 if I sell the old ones)
>
> * Digital storage upgrade with two 5 Terabyte mirrored drives.
>
> * Another Leica d700 body
>
> * Hasselblad Digital back (who am I kidding)
>
> * Case of Laphroag for "inspiration" (who am I kidding x2)
>
> Any thoughts?
>
> kyle
>
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>

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