The president signed another law the other day. This one has some tax implications that might be of interest to some folks who are using the DON method of tax resistance.
- Section 179 depreciation is extended. If you are self-employed or own a small business, this makes it more convenient to deduct expenses for equipment you purchase. For instance, if you buy some software you need to use in the line of work, you can take the entire cost of the software as a deduction during the year you purchase it, rather than subjecting the cost to arcane depreciation rules. Section 179 only applies to certain business expenses, and not all businesses qualify, so you still have to tangle with some red tape before you know if this will do you any good.
- If you are hiding money in offshore accounts, the new law has a number of measures designed to make this tougher and to make the penalties for getting caught worse.
- The perennially-extended deductions for teachers’ classroom expenses, higher education expenses, and state property & sales taxes have been extended yet another year, through .
- Your ability to make tax-free contributions from a tax-deferred retirement account to charity is also extended through .
