Get a Tax Break on AVST Technology
Take Advantage of the Doubled Deduction ($500,000) and 50% Bonus Depreciation
What is the Section 179 Deduction?
As part of the emerging program to stimulate the economic recovery and motivate businesses to further invest in technology, the U.S. Government signed into law on September 27, 2010 the Small Business Jobs and Credit Act of 2010 (Section 179), which boosts tax deductions. That means that if you buy or lease a piece of qualifying equipment or software, you can deduct the FULL PURCHASE PRICE from your gross income.
How Does it Work?
Business taxpayers may now generally elect to take an outright deduction of up to $500,000 of the cost of qualifying equipment and software placed in service during a tax year. If the aggregate cost of qualifying assets placed in service during the tax year is greater than $2,000,000 then the deduction is reduced by $1 for each dollar by which the aggregate cost exceed $2,000,000.
For qualifying assets, the cost of which has not been deducted under Section 179, the remaining cost of the equipment is then depreciable in accordance with the ordinary tax depreciation rules.
For example, if the taxpayer places only two pieces of equipment in service in a tax year, each having a cost of $275,000, and each having a MACRS recovery period of five years, the maximum Section 179 and depreciation deduction in the first year would be:
Qualifying Assets |
$550,000 | |
Section 179 Deduction |
$500,000 | |
50% Bonus Depreciation |
$25,000 | |
20% MACRS Depreciation |
$5,000 | |
Total First Year Deduction/Depreciation |
$530,000 |
Small Business Jobs and Credit Act of 2010 (Section 179) Highlights:
- An increase of the total amount available for deduction to $500,000 (up from $250,000)
- An increase to the total amount of equipment purchased to $2 million (up from $800,000)
- The above numbers are to be in effect for 2010 and 2011
- In addition, the bill also extended the "50% bonus depreciation" to the tax year 2010
Leasing Program
AVST is offering special financing through our partner, GreatAmerica Leasing, on new AVST technology purchases. Get the new equipment you need to increase efficiency without the hassle of upfront costs.
To learn more, contact an AVST Sales Representative.
