Buy needed tangible personal property by December 31 if you are eligible for the expensing of capital assets and you have not reached your limit. The dollar-for-dollar write-off will give an immediate reduction of taxable income.
The taxpayer reduced their taxable income by $5,000 by expensing the equipment in the first year. Since the parents income was assessed at 47% the income reduction may increase the childs financial aid eligibility by $2,350 ($5,000 x 47%).
If you are in a financial aid income assessment rate of 47%, you could increase your financial aid eligibility up to $470 for every $1,000 of income reduction by expensing the equipment in the first year.