Given the current economic climate, you might not be thinking about making major equipment purchases. But, with the clock running out on the Economic Stimulus Act of 2008, it’s an incredible time to buy and an almost impossible savings opportunity to pass up.
In Plain English
Basically, businesses buying new equipment can take an immediate write-off of up to $250,000 – that’s double the amount that was allowed in 2007.
If you put that equipment into service this year, then you’re entitled to an additional 50% depreciation on the remainder. Those write-offs and tax savings can mean major cash flow advantages and huge cost cuts.
The Numbers
Let’s do the numbers then – you want to buy a Legend 72 UV Curable Printer, the best and first heavy-duty, industrial-grade UV-curable printer available for under $80,000. For an individual or small business in the average 33% tax bracket, that means a total tax cash credit of $35,000. Without the Economic Stimulus Act of 2008, that cash credit would have been less than half of that, only $15,000.
And if you’re in a partnership or an S corporation and your taxes are based on your personal income, then the higher your tax bracket, the better the deal is for you.
Again, given the downturn in the economy, most of us aren’t really thinking about major equipment purchases. But, those kinds of savings are hard to pass up – especially in a year where every penny counts. Add those savings to the 50-80% reduction in production costs that a wide format UV printer like the Legend 72 provides and you’re looking at a piece of equipment that could drastically improve your bottom line this year and well into the future.