TAX INCENTIVES AVAILABLE WHEN YOU PURCHASE EQUIPMENT IN 2010!

Essentially, Section 179 of the IRS tax code allows businesses to deduct up to the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you may be able to deduct up to the FULL PURCHASE PRICE from your gross income. It's an incentive created by the US Government to encourage businesses to buy equipment and invest in themselves.
For the 2010 tax year, Section 179 allows businesses that spend less than $800,000 a year on qualified equipment to write off up to $250,000 in 2010 – then Section 179 is set to completely expire next year in 2011.

PLEASE PLUG-IN THE ESTIMATED MACHINE PRICE HERE:	$

The simple spreadsheet below will demonstrate your potential Tax Savings:

2010

Estimated Machine Price (EMP)

Section 179 Deduction

Balance to Depreciate over 7 Years (EMP - Section 179 Deduction)

Standard Depreciation (14.29% Yr. 1 x (EMP - Section 179))

Total First Year Tax Deduction(Section 179 Ded. + Stand. Depreciation)

Assumed Customer Tax Bracket

TAX SAVINGS

$
$



$

$

$

35%

$

Companies should consult their tax accountants to confirm eligibility for tax benefits.

If a company exceeds its depreciation limit for the year, MFS can also offer a number of financial products to minimize a company's tax liability beyond Section 179, and the Standard Depreciation.