By financing your equipment project, you can actually produce a cash surplus by electing the Section 179 Tax Deduction! Why? Because your business may be able to deduct the full purchase price of the project (up to $500,000) for the current year's taxes, while your total monthly finance payments for 2011 may be less than the tax savings you can receive. So, your TAX SAVINGS can exceed your 2011 finance payments.
Effective 9/27/2010, H.R. 5297 (the Small Business Jobs and Credit Act of 2010) implemented several initiatives. One such initiative increased the Section 179 limit under the HIRE Act of 2010. This may mean a substantial boost to your bottom line for 2011.
Key Changes: - Increased maximum deduction from $250,000 to $500,000 - Increased maximum equipment purchases to $2,000,000 (from $800,000) - Amounts over $2,000,000 decreased dollar for dollar deduction
