Desperate Deductions

[John Formsma]

On Mon, Apr 21, 2008 at 11:44 AM, Dean May <deanmay at pianorebuilders.com>
wrote:

>  >>Example: you buy a tool for $1,000.00.  It's a business expense, yes,
> but it just cost you $1,000.00.  The tax on $1,000 might be around $150.00
> (just a guess).  Had you not bought the tool, you would still have in your
> pocket the $850.00.  ($1000.00 - $150.00 = >>$850.00).  In effect, yes, you
> got the tool for $850.00, but you no longer have the money that was used to
> purchase it. :-)
>
>
>
> But you do have the equity of the tool.
>
Oh, to be sure.  My point was that we shouldn't go on a wild buying spree just
for the deduction.


> This may prove to be more valuable than the cash if the devaluation of the
> dollar continues to escalate.
>
Yeah, is it called "hard assets"? :-)  If we continue on our present
national course, we will see the end result of a baseless dollar.  Dollars
will be worth less (worthless??), and real stuff will be worth more.



> Investing in tools is an investment, not an expense. It is an investment
> that will not only be a tax write off, but hopefully (if done wisely) will
> actually contribute to the bottom line and give you more free time. And good
> quality tools will have resale value when you retire.
>

Absolutely.  I love tools, too.  <G>

-- 
JF
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