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.
- Bonus depreciation is generally taken after the section 179 spending cap is reached.
- Available for both new and used equipment.
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.
- This deduction is good on new and used equipment, as well as off the shelf software. To take the deduction for tax year 2019, the equipment must be financed or purchased and put into service between January 1, 2019 and the end of the day on December 31, 2019.
EXAMPLE CALCULATION OF SECTION 179 AT WORK DURING THE 2019 TAX YEAR
|First Year Write Off
($1,000,000 = maximum in 2019)
|100% Bonus First Year Depreciation
(Updated to 100% via Tax Cuts and Jobs Act)
|Normal First Year Depreciation
(20% in each of 5 years on remaining amount)
|Toal First Year Deduction
($1,000,000 + 150,000 + 0)
($1,150,000 x 21% tax rate)
|Equipment Cost After Tax Savings
(Assuming 21% tax bracket)
*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: email@example.com