Revised Section 179 American Recovery and Reinvestment Act for 2010

| April 7, 2010

For 2010, the revised Section 179 tax incentives will allow a business to expense up to $250,000 of qualified property until purchases exceed $800,000, above which the allowable deduction is reduced dollar for dollar up to $1,050,000, at which point the Section 179 deduction is totally phased out. Right now for 2011, the expensing limit goes back to $25,000 with an investment ceiling of $200,000.

EXAMPLE OF 2010 TAX STIMULUS

  • $500,000.00 New Machinery Equipment Acquired in 2010
  • $250,000.00 Extended Section 179 Deduction
  • $ 35,725.00 14.29% Standard Depreciation
  • $285,725.00 Total First Year Deduction
  • $100,003.75 Cash Savings, based on 35% Tax Rate

Note: Machine tools and fabricating equipment are typically depreciated over 7 years. Consult with your accountant.

The above calculations are only estimates; everyone’s tax situation is different.

Click here to download a PDF of the Revised Section 179 American Recovery and Reinvestment Act for printing.

CONTACT THE EXPERTS TODAY AT: 1-800-886-1469 email Mark Charlton markc@techfin.net

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