Now more than ever, businesses must do everything they can to minimize their tax liability and get the most from the equipment investments they make. The Small Business Jobs and Credit Act of 2010 increased the Section 179 deduction to $500,000 (up from $250,000). If you buy or lease qualifying new or refurbished equipment, you can deduct up to $500,000 of the purchase price.
Strategically purchased equipment for your business this year could significantly reduce your tax liability and cost of ownership.
As of this writing, the increased Section 179 Deduction of $500,000, resulting from the 'Small Business Jobs and Credit Act of 2010' will expire at year end. Without an action by Congress, the Section 179 Deduction for the tax year 2012 will only be $125,000. If you want to take advantage of the higher limits in the 2011 tax year, you need to act before the end of the year.
What this could mean for your business: Instead of depreciating a newly acquired asset over several years, the Section 179 expense allows a business to take a current year deduction of the full purchase amount up to $500,000 for assets under $2 Million. This benefit begins to decline after total new asset acquisition tops $2 Million. Over $2 Million, the amount you can deduct decreases by $1 for every dollar spent above $2 Million.
| *Chart for Example Purposes Only* | |
| Section 179 Deduction (your purchase) | $10,000.00 |
| 100% Bonus Depreciation Deduction | $0.00 |
| Regular First Year Deduction | $0.00 |
| Total First Year Deduction | $10,000.00 |
| 2011 Potential Tax Savings | $3,500.00 |
| Final Equipment Cost | $6,500.00 |
Making your equipment purchases before year end and partnering with Dental Equipment Liquidators is your best choice. Providing dental professionals with affordable alternatives to high priced equipment is our specialty. Saving customers 50 to 70% off retail prices, our knowledgeable staff and great customer service has put us in the forefront for over 12 years now.
And just as a reminder... Dental Equipment Liquidators Inc. and UsedDentalEquipment.net are not tax advisors. So be sure to consult your tax consultant for specific deduction details.