Let the Federal Government Pay the
First 15 Months of your New Machine!

"Not only is the Eurotech faster than the competition, its technology allows us to truly run lights out and that's worth even more....."
- Jeff Roth, Owner, Chasco


2009 Economic Stimulus Package

 

 

 

 

 

 

2009

2010*

 

 

 

 

 

 

 

 

 

 

1.)

Purchase Price:

 

 

$420,000

$420,000

 

 

(enter the total equipment cost)

 

 

 

 

 

2.)

Less Section 179 Allowance

 

$250,000

$128,000

 

 

(formula assumes small business status & $250,000)

 

 

 

3.)

Adjusted Cost Basis

 

 

$170,000

$292,000

 

 

(formula subtracts line 2 from line 1)

 

 

 

 

 

4.)

50% Depreciation Bonus

 

$85,000

$0

 

 

(multiply line 3 by .50)

 

 

 

 

 

 

5.)

Adjusted Cost Basis for MACRS

$85,000

$292,000

 

 

(line 3 minus line 4)

 

 

 

 

 

 

6.)

1st Year MACRS Depreciation

$12,147

$41,727

 

 

(multiply line 5 by .1429)

 

 

 

 

 

 

7.)

Total 1st Year Depreciation

 

$347,147

$169,727

 

 

(formula adds line 2 + line 4 + line 6) 

 

 

 

 

 

8.)

Write-off Percentage

 

 

82.7%

40.4%

 

 

(formula divides line 7 by line1)

 

 

 

 

 

9.)

Income Tax rate

 

 

34%

34%

 

 

(enter tax rate of 15%, 25%, 34%, or 39%)

 

 

 

 

10.)

Income Tax Savings

 

 

$118,030

$57,707

 

 

(formula multiplies line 7 by line 9)

 

 

 

 

 

11.)

After Tax Equipment Cost

 

 $301,970

 $362,293

 

 

(cost of equipment after estimated tax savings)

 

 

 

 

12.)

Lease Factor

 

 

 

$0.0190

$0.0190

 

 

(approximate lease factor per $1,000.00)

 

 

 

 

13.)

Monthly Payment with $0 down

$7,980

$7,980

 

 

(cost of equipment time line 12)

 

 

 

 

 

14.)

Number of Months Before Spending Cash

14.8

7.2

 

 

(Income tax savings divided by paymnet, line 10/line 13)

 

 

 

 

*Plan expected to end at the end of 2009.  Compare to 2010 to see what you could be missing out on.  Net operating losses for 2009 can be carried back five (5) years, and companies can receive income tax refunds from prior years.  Now is the time to invest in your business!

 

·        Section 179 of the tax code allows Small Businesses (those whose equipment purchases of all kinds, new or used, do not exceed $800k) to expense the first $250k until 12/31/09.  Any amount over $800k will decrease dollar for dollar up to $1,050k.

·        The Economic Stimulus Package of 2009 implements a "bonus" depreciation of 50% for purchases between 1/1/2009 and 12/31/2009.

·        14.29% first year depreciation based on a seven year asset life and tax savings are assuming a 34% tax bracket.

·        If a company cannot utilize the additional depreciation write-off, they can still benefit from this new legislation by entering into an “Operating Lease” agreement for the new equipment. In this situation, the leasing company will receive the accelerated tax benefits and will pass them back to the user of the equipment in the form of a lower monthly lease rate.

·        Eurotech is not a qualified tax advisor.  This worksheet must not be interpreted as either a legal opinion or a tax advisory.  You should always consult your accountant prior to making any purchase based on tax consequences.

 

The industry is getting busy; we sold more machines this
month than any month this year.


“With Eurotech many parts went from 7 ops to 1 op!
We not only reduced our operations, but we inspect a complete part 1 time
 instead of a partial part 7 times.” – Ken Sutton, Fabco-Air

 

DON'T WAIT! ONLY 4 MONTHS LEFT TO SAVE!
Now is the time to order equipment. $1 buyout leases qualify for tax incentives.

READ MORE.... A $250,000 write-off!
Section 179 Federal Income Tax Deduction: This deduction has been increased as part of the American Recovery and Reinvestment Act of 2009 and it allows a company to deduct the first $250,000 of equipment (Section 179 Property) purchased in 2009 from their taxable income. For companies purchasing (or leasing - with a $1.00 buy-out lease) up to $800,000 of equipment in 2009, this deduction is available in full. It then phases out on a dollar-for-dollar basis between $800,000 and $1,050,000 and it is not available for companies purchasing over $1,050,000 of equipment in 2009. However, companies can finance purchases over $800,000 with an operating lease and may still be able to claim this deduction.

50% Bonus Depreciation (expires December 2009)
The American Recovery and Reinvestment Act of 2009 also allows for a special 50% bonus depreciation for equipment placed in service for use in your trade or business for the production of income before January 1, 2010. This deduction allows an additional 50% first-year depreciation on the adjusted basis of qualified new equipment. $1 buyout leases qualify!

 

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