This is the perfect time to make an investment in upgrading your equipment. I’ll give you two really good reasons why:
by Jerry Bazata – “The Money Answer Man”
1. The HIRE Act, signed into law this past March, extended the increased 179 Tax Deduction (more about this in a moment).
2. New gear such as LED lighting, a USB digital mixer or upgrading to video can create a greater “WOW” factor for your clients. This = More Profit & Referrals!
Section 179 Expensing De-constructed
Under this increased tax deduction, equipment and off-the-shelf computer software may be immediately expensed (deducted) in the same year the asset was placed in service, rather than recovering the cost over time, which is referred to as depreciation. The deduction can help lower your adjusted gross income, which could help you qualify for various deductions and ultimately reduce your tax liability and the money you pay to Uncle Sam. The bottom-line? This is GREAT news for mobile entertainers (bands and DJs)
Eligible property includes:
* Machinery and equipment
* Furniture and fixtures
* Most storage facilities
* Off-the-shelf computer software
In simple terms, what was a $25,000 expensing/write-off limit has now been increased to $250,000; however, it will revert back in 2011. This “rapid” depreciation can help lower your adjusted gross income immediately, help you qualify for other various deductions and ultimately reduce your tax liability – that’s less of your money going to Uncle Sam. And that’s a good thing because it’s extra money in your pocket that can hook you up with new gear or an extra CD or DVD subscription that you can claim as a deduction next year.
Deals too good to pass up!
Manufacturers are offering a variety of incentives that provide reduced acquisition costs for new gear. With inventory levels high and company’s looking to bring continually bring new products to the market and move out last year’s models, retailers like can pass along measurable savings on new equipment purchases.
Don’t think it can’t work for you. Just recently I invested $500.00 in two new, simple-to-operate and set up lasers with some awesome eye catching effects. I demonstrated them at a fund raising event and within 48 hours booked two parties at 10% premium over my standard rate. In other words, the lights just paid for themselves in less than 30 days!
My bottom line is your bottom line: Now is the time to make that all-important decision to update your systems, venture into video performance, incorporate digital technology or acquire the latest in lighting and laser effects.
Jerry Bazata (Maine’s DJ Jaz) has over 25 years of experience as a professional DJ entertainer. His firm, J & J Marketing and Entertainment, is a leading consultant to the event planning and music industries. Jerry is a published author and is recognized nationally as an authority on the disc jockey business. To learn more about him, visit MaineDiscJockey.com or write to Jerry@mainediscjockey.com.
This post courtesy of proMobileDJ.com – Portal to The Disc Jockey Business
Originally posted 2010-05-04 11:43:10.