Tax Code 179 Benefits of a Straight Machine Tool
Purchase or Lease with $1.00 and $101 Purchase Option
Take advantage of Tax Code
Section 179 and expense up to the amount allowed for the year the equipment
is installed, 2012.
179 Federal Income Tax Deduction: This deduction allows a company to deduct
the first $139,000 of equipment (Section 179 Property) purchased in 2012
from their taxable income. For companies purchasing (or leasing with a $1.00
buyout lease) up to $560,000 of equipment in 2012, this deduction is
available in full. It then phases out on a dollar for dollar basis for
amounts over $560,000. $1 and $101 buyout leases qualify!
2. Additionally, companies can take
50% bonus depreciation on the adjusted basis of their qualified equipment
purchased in 2012. Equipment must be purchased and placed into service on or
before December 31, 2012. Companies may be eligible for standard
depreciation, plus state or local tax incentives.
Taxes go up in 2013!