Our federal government is offering some of the best incentives ever to buy equipment this year!
Basically you can purchase new and used equipment this year and write the entire amount off against 2011 profits. It does not matter if you pay cash or finance it the entire purchase price can be expensed.* Here are the rules:
SECTION 179 AND BONUS DEPRECIATION
Two congressional acts affecting Section 179 in a positive way for this 2011 tax year passed in late 2010 (The Tax Relief Act of 2010 and The Jobs Act of 2010). The newest changes are as follows:
· The Section 179 Deduction limit was increased to $500,000. The total amount of equipment that can be purchased was increased to $2 million. This includes most new and used capital equipment, and also includes software.
· The “Bonus Depreciation” was increased to 100% on qualified assets. However, this can be taken on new equipment only.
· When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2011.
· Section 179 can change yearly without notice, so it benefits you to take advantage of this generous tax code while it’s available.
What’s the difference between Section 179 and Bonus Depreciation?
· The most important difference is both new and used equipment qualify for Section 179 Deduction, while Bonus Depreciation covers new equipment only. Bonus Depreciation is useful to very large businesses spending more than $2 million on new capital equipment in 2011; also businesses with a net loss in 2011 qualify to carry-forward the Bonus Depreciation to a future year.
Does the date of my purchase have an impact on the Section 179 Deduction?
· Yes. To qualify for the Section 179 deduction for the 2011 tax year, the equipment must be purchased or leased and placed into service between January 1, 2011 and December 31, 2011.
*Factory Cleaning Equipment, Inc. is not a certified tax professional. It is recommended that you consult with your tax professional.
Sales of all types of equipment have been good in 2011 due to the improving market and tax incentives. If you plan on taking advantage of this program please plan ahead. Equipment lead times have been getting longer. All equipment must be delivered by 12/31/2011 to qualify.
From $189/month** From $389/Month**
**Call 800-793-3790 For Details