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2008 has suddenly become a great year to invest in your
business. This is due to The Economic Stimulus Act of 2008, which
just became law last month. This is a huge opportunity to
significantly increase your purchasing power when it comes to buying
new equipment under Tax Code Section 179.
In fact,
the deduction
limits have almost doubled for 2008, and there is a
new one-time bonus 50% depreciation once the $250K limit is
reached.
It is worth saying again, Section 179 allows you to
potentially write off the
full purchase
price of equipment purchases in 2008, (up to $250,000)
and also allows a first-year bonus 50% depreciation for any
over-limit equipment. Contact your tax professional to see how much
you can save.
This table will show you the effect of the new law:
Note, this is a sample for illustration only. You must consult your
tax professional
in order to determine what the actual benefits will be for your
particular business.
|
2008
Equipment Cost |
$50,000 |
$150,000 |
$250,000 |
$251,000 |
$300,000 |
|
Section
179 Deduction |
$50,000 |
$150,000 |
$250,000 |
$250,000 |
$250,000 |
|
50% Bonus
over $250 |
0.0 |
0.0 |
0.0 |
$500.00 |
$25,000 |
|
Regular
Depreciation First Year |
0.0 |
0.0 |
0.0 |
$100.00 |
$5,000 |
|
Total
Depreciation First Year |
$50,000 |
$150,000 |
$250,000 |
$250.600 |
$280,000 |
|
|
|
|
|
|
|
|
Cash
Savings (Assuming a 35% Bracket) |
$17,500 |
$52,500 |
$87,500 |
$87,710 |
$98,000 |
|
Lowered
Cost of Equipment |
$32,500 |
$97,500 |
$162,000 |
163,290 |
$202,000 |
Consider this, you could upgrade to a completely new shop, state
of the art booth, preps, several racks, measuring system,
compressor, spot welder and put $70 to $90,000 back in your pocket.
Not bad!
Contact your sales rep today and we’ll do the numbers. See how much
you can save and jump-start your business to better productivity and
expanded capability. Remember, only your
tax professional can accurately calculate your special opportunity.
Contact them today to see how much you will save. Then call us and
we will work to help you maximize this important opportunity.
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