THE PERFECT TIME TO BUY
2009 Tax Incentives
The American Recovery and Reinvestment Act of 2009 (ARRA) created significant allowances for new capital investments thus greatly reducing the true costs of investments in equipment and machinery. However, these incentives expire at the end of the year. That makes now a perfect time to buy.
SECTION 179 EXPENSING INCENTIVE
The Act allows qualifying businesses that purchase $800,000 or less in depreciable assets in 2009 to write off the full purchase price up to $250,000. Though the property must be acquired and placed in service by December 31, 2009.
50% SPECIAL “BONUS DEPRECIATION” INCENTIVE
Another change the Act brought to Section 179 is t it offers a one-time “bonus” first-year depreciation of 50% on qualifying equipment. This is after the above depreciation limit is reached. If your equipment purchase exceeds the $250,000 deduction, you can take a “bonus” 50% depreciation on the rest – this is in addition to the normal depreciation.