Possible tax savings on capital equipment

I recently received this reminder from a leasing company we refer clients to:

Section 179 Economic Stimulus Package
The New Economic Stimulus Package has recently announced the tax benefits for businesses in 2009. You may already know that IRS Section #179 allows a corporation to fully expense tangible property in the year it is purchased. You can deduct up to $250,000.00 of equipment this year with an equipment finance agreement or a lease!

Example: Equipment Purchase of $300,000.00
1st Year Write Off.............................$250,000.00
($250,000 is the max Section 179 write off in 2009)

50% Bonus Depreciation.................... $25,000.00
(remaining value: $300,000-$250,000 = $25,000)
Normal 1st Year Depreciation................$5,000.00
(Calculated at 5 yrs= 20%: $25,000 x .20= $5,000)

Total 1st Year Deduction....................$280,000.00
($250,000 + $25,000 + $5,000 = $280,000.00)

1st Year Net Cost after Savings....... $202,000.00
($300,000- $98,000 = $202,000) Tax Savings Assuming Rate of 35%.......$98,000.00
($280,000 x .35 = $98,000)

As with all such information you should rely only on your personal accountant or tax advisors advice. We have not indepently verified the details. However if you have purchased games, attractions or other capital equipment this year, or are planning to, you should look into the tax benefits.

Post Labor Day-Operational Adjustments

Time Flys- summer is now over and its September already. For those procrastinators out there, a quick adjustment will be necessary in most FEC's from summer season operations to early fall. With kids back in school, Friday night football starting up, etc, many FEC's see slow traffic in the first few weeks of September, steadily building into winter. In my FEC operating days we had a number of things we focused on to ensure a smooth transition:
1) anticipate the change in seasons and the effect on operations, especially payroll and morale.
2) ensure that we adjusted –in advance- quantity levels on consumable orders so as not to run up our inventory,
3) schedule necessary maintenance to recover from summer and prepare for the busier months ahead.
4) take stock against our sales & expense budget. Since we’re entering the home stretch of our operating year we want to review where we are against plan. This is a great time for the management team to have their first conversation about next year’s budget and plans.
5) put specifics to our fall and winter marketing plan.