2010 BUSINESS TAX INFORMATION

Lower the True Cost of Ownership on Your Business Equipment

There are a number of very attractive tax benefits that are currently available that can be utilized to supplement your facilities growth.

Use this tax calculator to estimate your tax benefit for a qualified purchase for your facility.


Tax Savings Calculator - Section 179 Deduction

Please enter the cost of equipment and click 'Submit'.
Cost of Equipment: 
Section 179 Expensing Allowance: --
Normal 1st Year Depreciation: --
Total 1st Year Deduction: --
Tax Savings Assuming Rate of 35%: --
Equipment Cost After 1st Year Tax Savings: --

Tax benefits are calculated using an estimated income tax rate of 35%.

This calculator presents a possible tax scenario. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please see your tax advisor to determine the tax ramifications of acquiring equipment or software in your particular situation.

Section 179 - $134,000 Expensing Allowance

Congress extends the amount that small businesses may write-off for capital expenditures: $134,000!

Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction.

Under Section 179, businesses that spend less than $530,000 a year on qualified equipment, may write-off up to $134,000 in 2010. The rules are designed for small companies, so the $134,000 deduction phases out when a business purchases more than $530,000 in one year. (Companies cannot write off more than their taxable income).

Benefits of Finance Agreements and Capital Leases

Maximize the tax benefit with a Group Financial Services finance agreement (conditional sales contract) or capital lease. Both allow a business to acquire equipment with a low monthly payment while taking advantage of the Section 179 – $134,000 expensing allowance. Examples of capital leases include a $1.00 buyout lease and a capitalized 10% purchase option lease.

Contact a Group Financial Services representative today to discuss financing your next equipment or software purchase.