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Bonus Depreciation

The American Taxpayer Relief Act extends 50 percent bonus depreciation through 2013. Some transportation and longer period production property is eligible for 50 percent bonus depreciation through 2014.


Example:
$700,000 machine
$500,000 Sec. 179 expense
$100,000 first year Bonus depreciation (50% of the remaining $200,000 after Sec. 179 expense)
$600,000 potential first year write off
$210,000 potential first year tax savings based on a 35% tax bracket

 

Consult with your tax advisor about this information.