for Equipment Purchases
Tax incentives for manufacturing companies just went up!
|2012 Deduction Limit = $139,000
This is good on new and used equipment, as well as off-the-shelf software.
2012 Limit on equipment purchases = $560,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced.
2012 Bonus Depreciation 50% (Only available for new equipment purchases
Smaller manufacturing companies intending to maximize tax write-offs and acquiring less
than $560,000 in equipment in 2012 would typically only utilize the Section 179 deduction
and not the bonus depreciation.
|Section 179 Expense||$500,000|
|50% Bonus Depreciation||$250,000|
|MACRS Depreciation on Balance||$35,715|
|Total 1st Year Deduction||$785,715|
This example presumes that the mid-quarter convention does not apply.
Everyone's tax situation is different and you should always consult with your tax professional.