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2012 BUSINESS TAX INFORMATIONLower the True Cost of Ownership on Your Business EquipmentThere 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 DeductionPlease 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 - Expensing Allowance increased to $500,000Congress extends the amount that small businesses may write-off for capital expenditures: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. The Small Business Jobs Act of 2010 increases the maximum amount a taxpayer may expense under IRS Section 179 to $500,000 and increases the phase out threshold amount to $2 million for tax years beginning in 2010 and 2011. The rules are designed for small companies, so the $500,000 deduction phases out when a business purchases more than $2,000,000 in one year. (Companies cannot write off more than their taxable income). The Tax Relief Act of 2010 increases the expensing allowance for 2012 to $125,000 with a phase out threshold of $500,000 (The dollar and investment limits would have reverted to $25,000 & $200,000 respectively for 2012 without the new law). Bonus Depreciation – 100% for 2011!The 2010 Tax Relief Act encourages businesses to invest by significantly enhancing bonus depreciation. The act temporarily increases this additional first-year depreciation allowance to 100% for qualified investments made after September 8, 2010 and before January 1, 2012 and then provides a 50% allowance for 2012. Bonus depreciation is available for all businesses and is not capped at a certain dollar level however, only new property qualifies.Benefits of Finance Agreements and Capital LeasesMaximize 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 – $500,000 expensing allowance. Examples of capital leases include a $1.00 buyout lease and a capitalized 10% purchase option lease.Download our Tax Benefits Approximator (PDF) Contact a Group Financial Services representative today to discuss financing your next equipment or software purchase.
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