| TAX INCENTIVES AVAILABLE |
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| WHEN YOU PURCHASE EQUIPMENT IN 2010! |
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MFS will show you how investing in equipment NOW can pay off in BIG Tax Savings for Fiscal Year 2010:
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Essentially, Section 179 of the IRS tax code allows businesses to deduct up to the full purchase price of
qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a
piece of qualifying equipment, you may be able to deduct up to the FULL PURCHASE PRICE from your
gross income. It's an incentive created by the US Government to encourage businesses to buy
equipment and invest in themselves.
For the 2010 tax year, Section 179 allows businesses that spend less than $800,000 this year on
qualified equipment to write-off up to $250,000 in 2010 – then Section 179 is set to completely expire
next year in 2011. |
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| The simple spreadsheet below will demonstrate your
potential Tax Savings: |
2010 |
| Estimated Machine Price (EMP) |
| Section 179 Deduction |
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| Balance to Depreciate over 7 Years (EMP - Section 179 Deduction) |
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| Standard Depreciation (14.29% Yr. 1 x (EMP - Section 179)) |
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| Total First Year Tax Deduction(Section 179 Ded. + Stand. Depreciation) |
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| Assumed Customer Tax Bracket |
| TAX SAVINGS |
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Companies should consult their tax accountants to
confirm eligibility for tax benefits.
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If a company exceeds its depreciation limit for the
year, MFS can also offer a number of financial products
to minimize a company's
tax liability beyond Section 179, Bonus Depreciation, and the standard depreciation.
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Manufacturers Financing Services would be happy to
finance your equipment purchases
and answer any questions relating to this tax
law. Please feel free to contact us with any questions.
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Contact your MFS Experts at
(877) 949-4771, ext. 2516 or 2537
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