Looking for your Pot ‘O Gold?
With the arrival of March, we are all inundated with Images of an Irish Leprechaun dancing around a “Pot ‘o Gold” at the end of the rainbow. Could this “gold” be found in March Madness, GDP Predictions, Tax Reform, and Section 179 Depreciation?
USA Today has gone out on a limb well before the start of the first game and is predicting that Michigan, the #4 seed, will be the Final Four Champion in 2018. Even those who are not ardent sports fans will enjoy this season if they fill out a bracket and track their choices. It is a rite of Spring as much as the opening game of Baseball in April. Take a chance and you may win the jackpot if you correctly predict the winner.
While we are picking our brackets, momentous things are happening in the economy. The 1st quarter GDP should solidly bump up to 3% in 2018, according to a prediction in Kiplinger. Other economists are suggesting it could be over 5% as stated in this article. Manufacturers are anticipating increased demand and are racing to ramp up production. If these forecasts are accurate, entrepreneurs who are moving these products may reap their ”pot ‘o gold”.
Another windfall has occurred due to the Tax Reform Act of 2017 that was just passed in December. It lowered the corporate tax rate from 35% to 21% which enabled many companies to provide bonuses to their employees, as described in this source.
In addition to these tax cuts, there is another “jackpot” in this legislation, commonly referred to as the Section 179 Bonus Depreciation. It is important to know that a Capital Lease will qualify for this tax savings which allows companies to immediately deduct 100% of eligible property. The legislation also increased the maximum amount a business owner could deduct to $1Million; it had been $520,000. This is a huge incentive for them to invest in capital equipment while they can take advantage of the potential “pot ‘o gold” contained in this provision.
Even if you don’t win your bracket, you could find a “pot ‘o gold” in other places. We would be glad to assist you.
It’s the “lease” we can do,
Kevin F. Clune, CLFP
Clune & Company
