So how did you do? You saved a bundle, I hope. Because last year was a GREAT year for Section 179. The limits were very generous (up to $500,000), and really allowed for businesses to clean up.

But if you missed out – do not despair. Section 179 is still here, albeit a little smaller. Ok, a lot smaller. Like $375,000 smaller. This year, the total deduction is $125,000. Yes, that’s a far cry from last year, but you know, it’s still something – we could have nothing (after all, our grandparents didn’t have Section 179. That must have really angered them as they walked to school uphill in the snow – both ways.)

I said all year last year to take advantage of Section 179. And I’m going to say it again this year, because if left unchanged, Section 179 will shrink further (in fact, it’ll go all the way down to $25,000). Now, I did say “left unchanged” – our leaders seem to like Section 179, so here’s hoping that it’ll get raised at some point. But then again, it is an election year, and Section 179 is not a hot button issue, so there’s a good chance that $125,000 we’re getting this year will be the best we’ll see for some time.

So that’s my message here for tax time – there’s still this great government program that’s just itching to give businesses who spend money on equipment a nice break. But you can’t put it off – the equipment must be purchased and put into service this calendar year.

Have a happy tax season, everyone (bet this is the first time someone wished you that!)

Just a friendly reminder for those who might need it – Today is Tax Day! Considered one of the most significant dates for us financial folks, especially those of us deeply involved in equipment finance, this day carries considerable importance. If you haven’t already, now’s the time to file your 2007 tax return.

If, for any reason, you find yourself unable to file by the stroke of midnight tonight, don’t fret. There’s an option to apply for an extension. All you need to do is file Form 4868 (click the link to download it directly from the IRS website.) It’s a straightforward process designed to give you some breathing room.

While we’re on the subject, it’s never too early to start planning for next year’s return. As we’ve previously discussed on this blog, Section 179 plays a critical role for businesses considering purchasing new or used equipment. The tax incentives offered under this provision are quite substantial. If you’ve been on the fence about investing in new or used equipment, it might be worth considering how these incentives could bolster your bottom line.

In fact, the financial implications of equipment purchases could be even more favorable than you realize. You see, in many cases, financing new or used equipment may result in monthly payments that are actually lower than the revenue the equipment generates. Couple this with the new Section 179 tax incentives for 2008, and you might find that equipment financing or leasing could make 2008 more profitable than you had initially forecasted. Just some food for thought as we navigate through this Tax Day.

And now, it’s time for me to dive back into the world of finance. Here’s hoping you all have a successful and stress-free Tax Day! As for my celebrations…well, we finance professionals are a bit secretive about our Tax Day rituals. But let’s just say, it might involve some thorough desk organization and perhaps even a bonfire. But that’s a story for another day!

Stay tuned for more tips and insights into the world of equipment finance. Remember, knowledge is power, and with the right information, we can all make better business decisions.

Until next time, stay financially savvy!