2008 BUSINESS TAX INFORMATION
There has never been a better time to invest in your business. 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.
Please enter the cost of equipment and click 'Submit'.
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 - $250,000 Expensing Allowance
2008-Only Increase! Business owners who acquire equipment and qualified software for their business
usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This
accelerated deduction is known by its section in the tax code: the Section 179 Expensing Allowance. A new 2008
law increases the amount of qualified property that a business can expense under Section 179 to $250,000. This
incentive is for equipment and qualified software placed in service between December 31, 2007 and January 1,
2009 and is designed for small companies, so the deduction phases out when a business purchases more than
$800,000 in one year. The increase does not extend to 2009. In 2009 it goes back to $128,000.
Bonus Depreciation
2008-Only! The law passed in 2008 also created a bonus depreciation of 50% for qualifying assets. This
bonus is in addition to regular first-year depreciation.
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 – $250,000 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.
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