We warned our DKTaxServices clients early on to expect to extend their returns this year.  That’s because we knew there would be a lot of changes coming in 2009.  I don’t know that any of us expected quite this much, though.

A new client just found out he didn’t lose out on the Section 179 deduction.  He had tried to put a plan in place to take advantage of the huge Section 179 deduction in 2008.  This allowed him to write off $250,000 in expense for equipment he bought in 2008.  But there was a last minute problem, and he couldn’t get it bought in 2008  (It was specialized equipment with limited suppliers.)  So, he bought it in January and just said “oh well.”  Imagine how happy he was to discover that he could get the Section 179 in 2009 too! (Part of the new Econ Stimulus bill)  But, now we have a choice. He could instead take bonus depreciation of 50% which would allow him to take a NOL back to 2008 which will probably end up being a bigger income year for him then 2009.

That’s part of the planning we’re already doing for 2009.  There are hundreds of little tricks like this that we use to get our clients the best tax savings possible.  There are often many different ways to approach your tax planning.  The key isn’t just doing it right, it’s doing it right in the way that best serves your goals.