ECONOMIC
STIMULUS ACT OF 2008: A $250,000 TAX WRITE-OFF!
| $250,000
TAX WRITE OFF. Manufacturers
can now save thousands of dollars on their taxes! Section 179
Federal Income Tax Deduction has been increased as part of the
Economic Stimulus Act of 2008. It allows a company to deduct the first
$250,000 of equipment (Section 179 Property) purchased in 2008 from their
taxable income. For companies purchasing (or leasing, with a $1.00 buyout
lease) up to $800,000 of equipment in 2008, this deduction is available in
full. It then phases out in a dollar-per-dollar basis between $800,000 and
$1,050,000 and is not available for companies purchasing over $1,050,000
of equipment in 2008.However,companies can finance purchases over $800,000
with an operating lease and may still be able to claim this deduction. |
50%
Bonus Depreciation: (Expires in December 2008)
The
Economic Stimulus Act of 2008 also allows for a special 50% bonus
depreciation for equipment placed in service for use in your trade or
business for the production of income before January 1, 2009. This
deduction allows an additional 50% first year depreciation on the adjusted
basis of qualified new equipment. |
Standard depreciation
Additionally,
companies can take their standard depreciation deductions on the
adjusted basis of qualified equipment. Machine tools and fabricating
equipment are typically depreciated over 7 years.
|
| Example Equipment
Cost |
$350,000.00 |
| Federal Section 179
Deduction |
-
$250,000.00 |
| 50% Bonus
Depreciation |
-
$50,000.00 |
| Standard Depreciation
-14.29% on the adjusted basis of equipment put in service in first
3 quarters (reduced in 4th quarter) |
-
$7,145.00 |
| Estimated Write-off |
$307,145.00 |
|
| Tax
laws are subject to change anytime and their application is highly
dependent upon the unique facts and circumstances of any particular tax
payer. The information on this page is offered as a general guidance and
is not intended for specific legal, tax or accounting advice. These
calculations are only estimates and everyone's tax situation is different.
Companies should always talk to their accountant to confirm eligibility for tax benefits. |
Intech Funding Corp.
info@intechfunding.com
800 553-9208 tel l 800 553-9192 fax
info@intechfunding.com
800 553-9208 tel l 800 564-1849 fax
Financing
& leasing for all types of manufacturing equipment. Call Intech for
low rates and monthly payments on your next machine!
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