If you purchase or lease a copier this year, you can save real money by taking advantage of the "Section 179" tax equipment write off.
For more information and assistance, contact SCCS to discuss with our knowledgeable sales representatives just how much you can save!
Section 179 Tax Rebate
What is Section 179?
A lot of people think it's some complex tax code that changes ever year and is best left to the accountants. While there are typically changes to the amount you can write off every year, basically, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. In 2010, it goes up to $250,000. It's an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves.
When your business buys equipment, you typically have to write it off a little at a time through depreciation over the life of that equipment. Section 179 lets you write it all off NOW, with the idea that through this incentive, you just might add more equipment this year instead of waiting.
Example Savings
Say you spend $150,000 in equipment purchases in 2010.
Normally you'd have to depreciate it over 5 years (or so), $30,000 at a time. Assuming a 35% tax rate ($30,000 x .35 = $10,500), that's a real cost-savings of $10,500 every year for 5 years.
Better than nothing, sure, but with Section 179, it looks like this:
$150,000 - Same 35% tax rate ($150,000 x .35 = $52,500), and that's over $50,000 in REAL, TAX dollars that you would have had to give to Uncle Sam.
Suddenly, that $150,000 in equipment only costs you $97,500, and all you have to do is put the equipment in service before December 31st to qualify for the deduction. Even if you finance (or lease) it, and haven't even made a payment yet, you can still take the deduction. Pretty attractive.
