Tax Incentives to Purchase Steel Fabricating Machinery!
First years tax savings could exceed first years machine payments!
There are significant Tax incentives for you to purchase new machinery
before the year end. These tax incentives apply to outright purchases
and to certain lease purchases.
Equipment leases that include a $1.00 purchase option
qualify for the federal Section 179 deduction and regular depreciation.
Companies may also be eligible for additional state and
local tax deductions plus interest deductions. Companies purchasing
equipment now could see their tax savings cover their first year's
payments!
$105,000 Write Off
Section 179 Federal Income Tax Deduction:
This deduction allows a company to deduct the first
$105,000 of equipment (Section 179 Property) purchased in 2005 from
their taxable income. For companies purchasing (or leasing - with a
$1.00 buy out lease) up to $420,000 of equipment in 2005, this deduction
is available in full.
It then phases out on a dollar for dollar basis between
$420,000 and $525,000 and it is not available for companies purchasing
over $525,000 of equipment in 2005. However, companies can finance
purchases over $420,000 with an operating lease and may still be able to
claim this deduction.
Standard Depreciation
Additionally, companies can take their standard
depreciation deductions (14.29%) on the adjusted basis of qualified
equipment. Machine tools and fabricating equipment are typically
depreciated over 7 years.
Band Saw Tax Incentive Examples
To illustrate just how much you can save we have created
two examples below. Please consult with your accountant to verify the
savings that will apply to your specific purchase.
PURCHASE EXAMPLE #1 - Ocean Terminator Saw Purchase
|
A manufacturing company acquires a new
Ocean Terminator for say $60,000.
The company is eligible for the $105,000 federal section
179 write-off plus a standard depreciation.
Under the current law, the
company may write off the ENTIRE Band Saw (100%) in Year 1 |
Ocean Terminator
Band Saw Purchase including Material Handling Equipment |
$60,000.00 |
|
Section 179 Deduction |
$60,000.00 |
|
Balance |
0.00 |
|
Standard Depreciation ($125,000 -
$105,000) x 14,29% |
$0.00 |
|
TOTAL FIRST YEAR WRITE OFF |
$60,000.00 |
|
PURCHASE EXAMPLE #2 - Ocean Terminator Saw Purchase with Material
Handling Equipment
|
A manufacturing company acquires a new
Ocean Terminator plus extensive material handling equipment for say $125,000.
The company is eligible for the $105,000 federal section
179 write-off plus a standard depreciation.
Under the current law, the
company may write off $107,858 the first year - more than 86% of the
machine cost! |
Ocean Terminator
Band Saw Purchase including Material Handling Equipment |
$125,000.00 |
|
Section 179 Deduction |
$105,000.00 |
|
Balance |
20,000.00 |
|
Standard Depreciation ($125,000 -
$105,000) x 14,29% |
$2,858.00 |
|
TOTAL FIRST YEAR WRITE OFF |
$107,858.00 |
|
Companies may also be eligible for additional state and
local tax deductions plus interest deductions. Standard depreciation may
vary depending on time of year. These calculations are estimates only &
everyone's tax situation is different
As you can see, there has never been a better time to
buy machinery, and the range of products offered by Ocean Machinery will
not only improve your profitability but will also qualify you for
significant tax advantages.
Call us today to hear about other small and medium
fabricators, just like you, who have completely changed the way they
work.
Ocean Machinery can arrange very competitive financing
with 24 hour lease approval.
Call NOW to Purchase your Steel Fabricating Machinery
1 800 286 3624 (954) 351 0899
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