| TAX INCENTIVES AVAILABLE |
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| WHEN YOU PURCHASE EQUIPMENT IN 2011! |
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MFS will show you below how investing in equipment NOW can pay off in BIG Tax Savings for Fiscal Year 2011:
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Two important tax laws offer significant tax advantages when acquiring capital equipment as outlined below:
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1) Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This means that if you buy (or lease) a piece of qualifying equipment, you can deduct 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 2011 tax year, Section 179 allows businesses that spend less than $2,000,000 a year on qualified equipment to write off up to $500,000 from taxable income.
2) Bonus Depreciation is now available to all businesses which buy (or lease) a piece of qualified equipment. There is no limitation on how much equipment may be expensed through bonus depreciation.
For the 2011 tax year, Bonus Depreciation allows businesses to write off 100% of all qualified equipment acquired during the year.
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| The simple spreadsheet below will demonstrate your
potential Tax Savings: |
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| Estimated Machine Price (EMP) |
| Section 179 Deduction |
| Balance to Depreciate via Bonus Depreciation(EMP - Section 179 Deduction) |
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| Total First Year Tax Deduction(Section 179 Ded. + Bonus Depreciation) |
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| Assumed Customer Tax Bracket |
| TAX SAVINGS |
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| Estimated # of Payments (on a 5-year lease/loan) covered by the Tax Savings |
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Companies should consult their tax accountants to confirm eligibility for tax benefits. Bonus Depreciation is not available on used equipment.
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If a company exceeds its depreciation limit for the year due to the Alternative Minimum Tax, MFS can also offer a number of financial products to minimize a company’s tax liability beyond Section 179, Bonus and 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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