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Section 179 Tax Advantages |
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Reduce or eliminate your tax liability by utilizing your Internal Revenue Service Section 179 Election. The Internal Revenue Service provides for an accelerated deduction of qualifying capital expenditures. This amount varies by year and has been part of the tax code for a number of years. The annual amount has historically been indexed to inflation. In addtiion to a base amount that is fully deductible, bonus depreciation can be taken on amounts over the base amount (subject to phase out at higher capital spending levels). This has been and continues to be a very effective tax planning tool for small to medium sized businesses. Example of tax savings with Section 179: $250,000 - Qualifying Purchases 40% - Marginal Tax Rate $100,000 - Tax Savings In this example, the Federal Government has effectively provided immediate financing by allowing for reduce income tax payments. As with many tax planning opportunities, please consult a tax professional for application to your situation.
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