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November 10, 2008

Firms forgo tax break because they can't afford new equipment

By JOYCE M. ROSENBERG
AP Business Writer

NEW YORK — When Congress passed the economic stimulus package back in February, the measure contained a huge tax break for small businesses, dramatically increasing a popular deduction on equipment purchases. Now, with a faltering economy, many companies are likely finding they have to forgo the deduction because they can't afford to buy or finance a vehicle or computer gear.

“People aren't pulling the trigger on large capital purchases,” said Jeffrey Berdahl, a certified public accountant with Berdahl & Co. in Center Valley, Pa. “Businesses don't have good cash flow or cash reserves, so they're probably having to postpone purchases.”


 
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