DEPRECIATION BENEFITS SET TO EXPIRE
Companies wishing to benefit from bonus depreciation and increased Section 179 write off must act soon or lose the benefit.
The American Recovery and Reinvestment Act of 2009 provides enhanced depreciation and expense allowances for companies buying or leasing equipment. These benefits are set to end December 31, 2009. Equipment must be placed in service prior to January 1, 2010 to qualify for the benefit.
Section 179 Write Off – Currently set at $250,000 and is scheduled to reduce to $125,000 after 12/31/2009.
Bonus first year depreciation for new equipment – Currently set at 50% and scheduled to expire after 12/31/2009.
“What if my company cannot utilize the enhanced benefits this year?”
The ARRA of 2009 includes a provision that allows a five-year carry back of losses from 2009. If your company had a terrific year during the last five-years that resulted in a high income tax liability you may qualify for a refund. Check with your tax adviser for details.
Modern Machinery currently has several pieces of equipment that qualify for the Section 179 Tax deduction. Take a look at our inventory machines, including used equipment, on our used fabrication equipment page.