Big Winner Could Be Small Biz
Businesses, large and small, will be directly helped by the new economic stimulus legislation passed by Congress. But small businesses, in particular, may get the biggest lift indirectly — from consumers spending their tax rebates.
The $168 billion measure, which was approved by both houses of Congress with uncommon swiftness, includes rebates for taxpayers and incentives for businesses, all intended to bolster the sagging economy.
Bars, restaurants and other retailers are counting on increased business from consumers who will start getting their tax rebate checks in May. “That’s where small businesses will benefit the most,” said Barbara Weltman, a lawyer and small-business tax specialist in Millwood, N.Y.
Smaller companies like Dahm Trucking in Woodstock, Ill., are poised to benefit from the provisions aimed at businesses.
The legislation helps businesses in two ways. It gives companies a 50 percent bonus deduction on new equipment that would normally be depreciated over many years. And it increases — to $250,000 from $128,000 in 2008 — the limit on expenses that small businesses can deduct from annual income, with a total cap of $800,000.
For a small business like Dahm Trucking, which has annual revenue over $5 million, the most valuable provision is the increased expensing.
Now, Chris Dahm, its president, said he could buy three trailers, at $100,000 apiece. That means Dahm can enter contracts with three independent owner-operator truck drivers to haul goods on the trailers, and add a person to his two-member office staff. “It’s going to help us out quite a bit,” he said.
Photo by VroomBroom.
MCF on March 28th, 2008 1:01 pm
Dane – Thanks for the small biz tip. The trucker example is something our members are really interested in, I’ve referenced you on our blog @ http://www.uship.com/blog/archive/2008/03/28/go-buy-yourself-a-new-truck.aspx.
uShip is another “business opportunity” for owner/operators and carriers looking for new business in trucking.
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