2009 Tax Law
Always check with your accountant or financial
advisor to verify tax or accounting issues and any tax benefits.
A $250,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction has been
increased as part of the American Recovery and Reinvestment Act of
2009 and it allows a company to deduct the first $250,000 of equipment
(Section 179 Property) purchased in 2009 from their taxable income.
For companies purchasing (or leasing - with a $1.00 buy-out lease)
up to $800,000 of equipment in 2009, this deduction is available in
full. It then phases out on a dollar-for-dollar basis between $800,000
and $1,050,000 and it is not available for companies purchasing over
$1,050,000 of equipment in 2009. 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 December 2009)
The American Recovery and Reinvestment Act of 2009 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, 2010. 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.
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**Specials**