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Old 12-10-2007   #1
RawAlex
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Default Re: Tip - save on taxes by pre-ordering / prepaying expenses now

Quote:
Originally Posted by raymor View Post
If you expect to be in a higher tax bracket next year, it could cost you a little more next year,
though even in that case it's like paying a bit of interest on a loan - it could make good sense.
If you plan to incorporate next year, or buy a house, have a baby, etc., so that your tax situation
is better next year than it's a doubly good idea to take what expenses you can now.
It also depends on what you are buying. Computers and such are run off over 3 years, so you can't claim the full value this year. In theory, content should also be depreciated over a period of time, rather than taken as an expense, as it does become inventory and not "lost". Programming or website design is even more complicated, as it is considered a work product with value, and should be depreciated over at least a 2 year period (or written off at the point that it is no longer in use).
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