f Qie~ts. 4 —_ mmree j views Un ye veo ow lay: { Yi? A N01 gg? vil ow ‘ vito wHd Rg f ty Hh simes. vat 418) Notes \: Ba ' Ibi‘4 i Technology Tax Tips For Sl Businesses (NAPSA)—Many sl businesses have found a way to make with the latest technology. 7. Recycle Your Technology. Manystates offer tax credits for individuals or corporations that recycle equipment. Also, most major computer vendors let customers return any computer hardware through take-back and recy- tax time seem less taxing: Invest in new technology. A number of deductions and programs are available to companies that change old technology for newer systems. Taking advantage of them can help businesses lower taxes—and_ increase productivity. Analysts say the following tips from HP and H&R Block tax professionals may help your company make tax time compute: 1. Replace Older Technology. Congress increased the amount businesses can write off on new equipment purchases from $25,000 to $100,000. Business owners can use the tax break to invest in new technologies. The increased deduction, known as the section 179 deduction, is available through 2005. In addition, PC prices have dropped more than 40 percent since 2000, meaning sl businesses can save on the deduction andthecost of equipment. 2. Depreciate Computers And Electronic Equipment. Computers or other gadgets—such as handhelds, scanners and copiers—used for personal purposes, maybeeligible for a limited depreciation deduction if they are also used for business. For depreciation tips, see IRS Publication 946 or your tax advisor. 3. Take Advantage Of PCs. Use your PC for bookkeeping and other sl business processes that can help increase productivity and streamline operations— cling programs. For instance, in addition to its standard recycling program, HP offers an acquire-toretire asset managementservice. It can help sl businesses manReplacing outdated technology can help sl businesses enjoy big tax breaks. but be sure to track your usage. Depreciation can be limited if use of the equipment for business purposes is below 50 percent. 4, Consider Bonus Depreciation. A 50 percent depreciation bonusis available during thefirst year of service on certain capital assets acquired after May 5, 2003, but before January 1, 2005. The bonusdepreciation applies to most equipment, machinery, and office furniture. 5. Look Into Leasing. Leasing technology equipment lets businesses expense—rather than purchase outright—IT equipment. Sl businesses may be able to triple what their budget would ordinarily be able to support. 6. Take Security Precautions. Avoid being the latest victim of identity theft and be sure your PC and software are up-todate. If you file your tax return online, be sure to protect your personal and financial information age their IT investments in a cost- efficient manner—and dispose of equipment whenit’s time to move to newer technology. 8. Donate PCs To Charity. Manycharities accept old PCs as part of their exempt functions. Companies can use such programs to trim bloated inventory, obtain tax deductions and give back to the community. 9. Check The R&D Credit. Companies may be able to take a 20 percent credit for the cost of technology research intended to be useful in developing new or improved business components. 10. Keep It In The Family. The salary paid to a family member is a business deduction. Family members can assist with bookkeeping, administration, marketing and other aspects of your business. Your teenager may be the perfect IT specialist for your company. To make an appointment with an H&R Block tax professional, call 1-800-HRBLOCK. To learn more about HP’s technology products for sl and medium businesses, call 1-800-888-9909.
