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The Year in Taxes
By: Mark E. Battersby
Posted: February 25, 2009, from the March 2009 issue of Skin Inc. magazine.
page 5 of 5
Obviously, not all of the tax breaks that were a part of the 2008 law changes will affect all spa businesses and their owners. In fact, many of the provisions contained in tax laws, both new and existing, might be better ignored.
A spa business might, for example, have acquired an expensive new point-of-sale computer system in 2008. The expenditure for that computer system would qualify as a Section 179-expensing deduction, small enough not to trigger the ceiling. However, with little in the way of profits, a depreciation write-off over a number of years when profits will, hopefully, be greater and the tax bracket more onerous might be more advantageous.
Consequently, professional advice takes on a special urgency for every spa business, as well as every owner, manager and skin care professional. It is not too late to take full advantage of the new—and in many cases, temporary—tax breaks. Nor is it too late to develop a strategy that will reduce taxes for the 2008 tax year, and for many years to come.