Contractors should use this approach to assess their own situation to determine if they have a tax liability for 2010. If you do have such risk, a replacement purchase before the end of the year may be just what the doctor ordered. The new Section 179 limits offer a similar result for 2011.
While these opportunities offer up seemingly simple solutions, they are not as simple as they seem. Consequently, you should check with your tax professional before making any commitments.
Garry Bartecki is the managing member of GB Financial Services LLP and VP Finance for the Associated Equipment Distributors. He can be reached at (708) 347-9109 or email@example.com.