Risky Business

How To Cash In On Stimulus Tax Breaks: Keep Cash Flow Up

By Matthew Bandyk

Posted: February 18, 2009

One provision of the stimulus package allows businesses to immediately write off 50 percent of new equipment purchases from their taxes, for up to $250,000 of purchases. If a business is losing money, it can carry back net operating losses to a previous profitable year, and claim a tax refund for that year, for up to five years.  But what about businesses that can't do that--say, they're out of the five-year limit, or are currently profitable--but still are having trouble making investments? How do you improve your cash flow to the point where you can invest in new equipment this year?

The New York Times just published a guide to the basics of improving cash flow. It also has some links to new resources on how to do old tricks, like this blog on factoring.

Also, as the Wall Street Journal reported, some businesses are turning to bartering as a way to do cheaper transactions.

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Risky Business

Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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