Last year's stimulus bill expanded "section 179" expensing, a provision that lets businesses deduct as an expense the costs of some property purchases such as vehicles, machinery and computers. Normally, a business can write off up to $125,000 in spending on such goods. Last year, Congress temporarily increased that amount to $250,000 for expenditures in 2008. The new stimulus extends that higher limit through 2009. The provision is aimed at small companies: The deduction is phased out for businesses that spend more than $800,000 on capital expenditures for the year.
The Section 179 deduction, which allows businesses to deduct upfront rather than depreciate over time the costs of certain kinds of equipment, has nearly doubled, rising to $250,000.
The bonus depreciation provision allows businesses to depreciate 50% of the cost of equipment, with the balance to be depreciated according to IRS rules.
This Means Huge Tax Savings for You.
You can receive the full $250,000 deduction for purchases up to $800,000. After that, the deduction decreases $1 for each dollar over $800,000.
Get You Orders in Early.
Any unused portion of the $250,000 is lost opportunity to lower your taxes.
The time is now to save big! Call us today to learn how your practice can benefit from the Economic Stimulus Act. 1-866-815-7606 or click here.
BuyDentalEquipment.com is not a tax advisor, please consult your tax advisor for details.
The time is now to save big! Call us today to learn how your practice can benefit from the Economic Stimulus Act. 1-866-815-7606 or click here.
Use our Tax Calculator to find your potential savings:
| Section 179 Write-off | $0 |
| 50% Bonus Depreciation | $0 |
| First Year Depreciation1 | $0 |
| Total First Year Deduction | $0 |
| Potential Savings2 | $0 |
1 Straight line depreciation, five year recovery period
2 Assumes 35% tax bracket
