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Tax Planning Alert!
Under Tax Code Section 179, businesses that spend less than $500,000 a year on qualified equipment can write off up to $125,000 in 2007.
Take advantage of 2007 tax savings and acquire your equipment before year-end!
Time is running out!
Contact us today to find out how you can take dvantage of Section 179 and SAVE!
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This sample calculation
shows how taking
advantage of Section
179 can significantly lower the true cost of
equipment ownership
from $150,000 to
$104,000.
| Equipment Cost |
$150,000 |
|
| 1st Year Section 179 Write Off: |
$125,000 |
($125,000 is maximum write-off) |
| Normal 1st Year Depreciation |
$5,000 |
($150,000 - $125,000 = $25,000 x 20%
= $5,000)* |
| Total 1st Year Deduction |
$130,000 |
($125,000 + $5,000 = $130,000) |
| Tax Savings Assuming Rate of 35% |
$45,500 |
($130,000 x .35 = $45,500) |
| 1st Year Savings / Lowered Equipment Cost |
$104,500 |
($150,000 - $45,500 = $104,500) |
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| Contact your tax advisor about the specific impact on your company. |
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