TAX INCENTIVES

Our USA government has amended the Section 179 tax write offs for machine and equipment purchases for 2010 & 2011. If you require equipment and have a “ PROFITABLE 2010 “ Financial year you may want to consider buying now for a 2010 installation.

VERY Important ,,, includes a 5 year carry back provision ,, If you can’t realize the benefit in 2010 ,,, how about 2006, 2007, 2008 tax amendment.   

Click here to see attached Tax Incentive Calculator ,,,,, Change the date to reflect your equipment installation and total cost.

Example of the additional savings:               New 2010 and 2011                Old Plan  

Equipment Cost ( New and Used Qualify)     $1,000,000                             $1,000,000

Section 179   (Phases out at $2 million)         $  500,000 max.                    $  250,000 max.

50% Bonus Depreciation -                                2010 Only                                 N/A

($1,000,000 - $500,000 x 50%)                       $250,000                                   (lose the bonus)

 Std Depreciation – 7 Yr. MACRS                     $  35,725                                   $107,175

Total First Year Deduction                                $785,725                                    $357,175

Potential Tax Savings @ 35% Tax Bracket    $275,000                                   $125,012

Cost Of Equipment After Tax Savings              $725,000                                   $874,988
Carry Back Provision                                            5 Years                                     5 Years

( if you made money and paid taxes , you can now amend your 2006, 2007, 2008 , 2009 ) tax returns and get a refund )

Example only -  We do not offer tax advice - Please confirm with your account or CPA regarding your companies tax liabilities and benefits.