Take Advantage of Big Tax Breaks

Bonus Depreciation extended, Section 179 Expensing made permanent

With the productivity and profitability of U.S. manufacturers in mind, Mazak encourages you to take advantage of two key tax incentives from the government regarding machine tool purchases.* A first-year bonus depreciation allows for a 100 percent bonus deduction, while the now permanent Section 179 provides equipment expensing up to 1,000,000.

For additional information, contact MCC Credit Group at (859) 342-1311 or toll free at (877) 634-5521 and ask to be transferred to Mazak Credit Group.

100% BONUS DEPRECIATION

  • The 100 percent bonus depreciation deduction applies to any dollar amount of qualified capital expenditures.
  • Used machine purchases now qualify for the deduction.

SECTION 179 DEDUCTION

  • The Section 179 Expensing limit is now permanent at $1,000,000.
  • A dollar-for-dollar phase out of the deduction begins once qualified purchases exceed $2,500,000.

EXAMPLE CALCULATION OF SECTION 179 AT WORK DURING THE 2018 TAX YEAR

Equipment Purchases $1,150,000.00
First Year Write Off
($1,000,000 = maximum in 2018)
$1,000,000.00
100% Bonus First Year Depreciation
(Updated to 100% via Tax Cuts and Jobs Act)
$150,000.00
Normal First Year Depreciation
(20% in each of 5 years on remaining amount)
$0.00
Toal First Year Deduction
($1,000,000 + 150,000 + 0)
$1,150,000.00
Cashing savings
($1,150,000 x 21% tax rate)
$241,500.00
Equipment Cost After Tax
(Assuming 21% tax bracket)
$908,500.00

 

*Please consult with your tax professional regarding these incentives.


MCC Credit Group
6850 Industrial Road
Florence, Kentucky 41042
 
Phone Number: (859) 342-1311
Toll Free Number: (877) 634-5521
Fax Number: (859) 342-1502
Email: mccgroup@mazakcorp.com