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Supplies are deductible now, but when you buy property, such as plants, trash cans, and other items that can be expected to last for more than one year, they are subject to depreciation and their cost usually is recovered over a number of years fixed by the tax law. However, you can elect to expense (fully deduct) the cost of these items (see post #25 for an explanation of first-year expensing). Again, first-year expensing can only benefit you if you're profitable. Otherwise, you'll have to rely on depreciation to deduct some of the cost now and the rest in the future. You can find details about this in my book, J.K. Lasser's Small Business Taxes 2009, or from the IRS in Publication 946, How to Depreciate Property, at http://www.irs.gov/pub/irs-pdf/p946.pdf.

The stimulus package was massive--$787 billion dollars. There are many provisions designed to help consumers, businesses, state and local governments, and others. In the next few weeks, be on the lookout for more information about programs related to this new law. For example, the IRS has set up a page on which it will post relevant new. Go to http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6. Similarly, there is information on many other government departments' and agencies' websites. I will also be posting developments through my website at http://www.barbaraweltman.com/.

A final point...even though the economy may be a tough business environment now, small business owners, I'm sure, will find creative and new ways to adapt and thrive. Be sure to see whether there are new tax breaks and government programs, as well as tools and products from commercial sources, to help you save money, open new lines of business, and implement your ideas.

Thanks for a great event Barbara! Community if you miss any of our live events, you can always read the event transcript.