First years tax savings
could exceed first years machine payments!
 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!
$125,000 Write Off
Section 179 Federal Income Tax Deduction: This deduction allows a
company to deduct the first $125,000 of equipment (Section 179
Property) purchased in 2007 from their taxable income.
Standard Depreciation
Additionally,
companies can take their standard depreciation deductions on the
adjusted basis of qualified equipment. Machine tools and fabricating
equipment are typically depreciated over 7 years.
Purchase Example
|
Customer purchases capital equipment to the value of ... |
$175,000 |
A manufacturing company acquires a new
machine for $175,000 and is eligible for the $125,000
federal section 179 write-off plus a standard depreciation.
Under the current law, the company may write off $132,145
the first year - more than 75% of the machine cost! |
|
Customer is entitled to a
Section 179 Deduction of... |
$125,000 |
|
Customer is entitled to a Standard Depreciation of.......
(14.29% yr. 1) ($175,000 -
$125,000) x 14.29% |
$7,145 |
|
CUSTOMER IS ABLE TO A FIRST YEAR DEPRECIATION WRITE OFF
OF.... |
$132,145 |
For a company principal, in the 30% income tax bracket,
this translates into a net first year tax savings of more than $45,000. Depending on your tax bracket, these savings could
exceed the first year's lease payments. Depending on your tax bracket, these savings could
exceed the first year's lease payments.
$1 Buy-Out Leases Qualify!
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. Please consult your accountant to
verify your own situation.
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
(800)
286-3624 (954) 956-3131
|
