NEW TAX LAWS SUPPORT
INVESTMENT IN CAPITAL EQUIPMENT!
Section 179 Federal Income Tax Deduction
- allows companies to write off up to $100,000 in equipment purchases made in 2003.
Equipment leases structured with a $1.00 purchase option qualify for this deduction.
Jobs Growth and Tax Relief Reconciliation Act
of 2003 - new economic stimulus gives additional first year depreciation.
Effective for new property placed in service after September 10, 2001 and before September
11, 2004, the act allows taxpayers to claim an additional first-year depreciation
deduction equal to 50% of the adjusted basis of qualified property.
Example for company that spends less than $400,000 per
year on equipment:
| New Equipment |
| Equipment Price |
$175,000 |
| Section 179 Deductions |
-$100,000 |
| Job Creation Worker Act extra 50% |
-$37,500 |
| Normal 1st year depreciation 20% |
-$7,500 |
| Amount of 1st Year Write-off |
$145,000 |
*Above for illustrative purposes
only, customers should discuss their eligibility for tax benefits with their accountant. |