And!
50% first year bonus depreciation: IRS provision applies to software placed in service before January 1, 2009
Drive business productivity up! Enjoy current year tax savings: Improve current year profitability and cash flow while leveraging the benefits of increased future productivity that results from the deployment of new assets
Example of 50% Bonus Depreciation in Action
Spend $300K on upgrading software. Software is treated under tax law as having a 3-year recovery period for depreciation purposes
Bonus depreciation on $300,000 at 50% is $150,000.00; an additional $50,000 is allowed representing 1/3 the remaining $150,000
Total tax depreciation for 2008 is $200,000!
2008 tax savings is $64,000.00 ($200,000 x 32%) assuming a 32% marginal Federal Income Tax rate
Without bonus depreciation: A business could only claim depreciation in the first year of $100,000 (1/3 of $300,000)
http://www.irs.gov/newsroom/article/0,,id=179227,00.html |
