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Home Technical 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.