2009 Stimulus Act Puts Money Back into Your Business with Tax Incentives


Need to buy a new lathe, but unsure if now is the right time? Check out the example below to find out just how much money you can potentially put back into your business by investing in new equipment NOW rather than waiting until 2010.

How does it work? The 2009 Section 179 Stimulus Act which expires on 12/31/2009 allows you to deduct from your tax liability the FULL PURCHASE PRICE of equipment purchases (up to $250,000). It also allows for a first-year 50% BONUS depreciation for any over limit equipment. This means substantial, immediate tax relief for your business and makes financing needed equipment in 2009 a financially-savvy business move.

Take the next step—Get a quote on a new Toolmex Manual or Manual Plus Lathe before time runs out and the bonus savings disappear. CALL 800-992-4677 or email machinesil@toolmex.com for more information.

EXAMPLE OF SAVINGS FOR PURCHASES IN 2009

Cost of Manual Plus CNC Lathe

$400,000

Section 179 Deduction

$250,000

50% Bonus Depreciation Deduction
(on any remaining amount above $250,000)

$75,000

 

Regular 1st Year Depreciation Deduction

$10,717.50

Total First Year Deduction

$335,717.50

Cash Savings on your Manual Plus CNC Lathe Purchase
(assuming a 35% tax bracket)

$117,501.12

Lowered Cost of Manual Plus CNC Lathe after Tax Savings

$282,498.88

Years Tax Credits Can be Carried Back

5-Years

The information contained herein is based on the current rules for depreciation expense under Section 1201 of the 2009 American Recovery and Reinvestment Act (ARRA). It should not be construed as tax advise or a promise of potential savings or reduced tax liability. For more information about the depreciation bonus, contact your tax professional or visit the Internal Revenue Service website at www.irs.gov.