Extended through December 31, 2010
On March 18, 2010, President Obama signed the 'HIRE Act of 2010' keeping the maximum Section 179 deduction at the increased level of $250,000 for qualifying equipment and software placed in service for tax year 2010. This is an incentive from the U.S. Government to encourage businesses to buy equipment and invest in themselves.
Section 179 Deduction phases out in 2011, take advantage of the higher limites and act before the end of this year!
Example:
| Cost of Equipment |
$100,000 |
| Section 179 Deduction |
$100,000 |
| Regular First Year Depreciation Deduction |
$0 |
| Total First Year Deduction |
$100,000 |
|
Cash Savings on your Equipment Purchase
(assuming a 35% tax bracket)
|
$35,000 |
| Lowered Cost of Equipment After Tax Savings |
$65,000 |
**This does not constitute tax or legal advice. Consult your accountant or tax advisor regarding Section 179 Capital Investment Deduction.