The end of the year is coming fast and if you haven’t made your spray foam rig or spray foam equipment purchase yet this year, now is the time. Section 179 is a federal tax break that has been in place for a few years and is coming to an end December 31, 2012. The savings that are available with the Section 179 deduction can be huge for equipment purchases such as our spray foam rigs. Let’s take a look at the details of the Section 179 deduction and what it can do to your bottom line.
If you don’t know what Section 179 is and you are looking to buy a new piece of spray foam equipment or a spray foam rigs you need to take a look at exactly what it can mean to you. First, let us tell you what it is:
Section 179 of the IRS Tax Code allows a small business to deduct, for the current tax year, the full purchase price of financed or leased equipment that qualifies for the deduction. The equipment purchased or leased must be less than the specified dollar limit (2012 is $840,000) of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for tax year 2012, this means the equipment must be put into service between 01/01/2012 and 12/31/2012).
So the saying, “There is no better time to buy than right now” is actually the truth when it comes to these last few months of 2012. The Section 179 deduction is only in place for the remainder of 2012. The savings that are represented with the Section 179 deduction are not some far-fetched, complicated, and nearly impossible offer to qualify for. The savings are real, easy, and applicable to leased equipment as well.
So one of the most common questions is, “What am I going to save with this deduction?” Let us take a look at few examples as they would pertain to some of the spray foam rigs and spray foam equipment well sell at Paratus:
Example Spray Foam Rig
- Cost of Equipment: $42,970
- Section 179 Deduction: $42,970
- Total First Year Deduction: $42,970
- Cash Savings on your Equipment Purchase:
$15,039.50
(assuming a 35% tax bracket) - Net Equipment Purchase: $27,930.50
- Cost of Equipment: $25,000
- Section 179 Deduction: $25,000
- Total First Year Deduction: $25,000
- Cash Savings on your Equipment Purchase:
$8,750
(assuming a 35% tax bracket) - Net Equipment Purchase: $16,250
Tags: foam, foam equipment, foam rigs, section 179, spray foam, spray foam equipment, spray foam rigs, tax savings, tax write-off
Stay current with our Blog
Join us on Facebook
Follow us via Twitter
…
Purchase Unique Pills Now!…