Taxes

• Tax Deductions
  What does all this mean? Let's take a look at it as if you were going to acquire a piece or package of equipment totaling $130,000. Under Section 179 we would be able to expense the first $100,000. With the 50 percent bonus depreciation enacted in the 2003 Jobs and Growth Act, we can take an additional 50 percent bonus of the remaining balance. Fifty percent of the remaining $30,000 is $15,000. Under the 20 percent first year depreciation as allowed under IRS rules, you would take 20 percent of the remaining $15,000, which is $3,000. Our total tax deduction on the $130,000 of equipment purchased or financed would be $118,000 in the year it was acquired.

Planning

• Asset Management
  A lease provides the use of equipment for specific periods of time at fixed payments: At your option, disposing of the equipment at the end of the lease can be our responsibility. You never have to worry about selling outdated equipment.