Its Back! the $250K Section 179 deduction.

Its back! Congress has renewed the Section 179 for businesses purchasing equipment! This is a great opportunity to buy much needed equipment for your hospital, surgery center or office and have the ability to reap the tax benefits before the years end.
Section 179 Deduction*
Business owners who acquire equipment including machinery, computers and other tangible goods, usually prefer a substantial depreciation deduction in a single year, rather than a little at a time over a number of years. This accelerated deduction is known by its section in the tax code: a Section 179 deduction. The 2o1o law again, extends the amount of qualified property that a business can expense under Section 179 again to $250,000. This incentive is for equipment placed in service by December 31, 2010 and is designed for small companies, so the deduction phases out when a business purchases more than $800,000 in one year.
Example: Equipment Cost of $300,000
First year write off: $250,000
($250,000 is the maximum Section 179 write-off in 2010)
Normal 1st Year Depreciation: $10,000
(Depreciation calculated at 5 years = 20%; ($300,000 – $250,000)x 20% = $10,000)
Total 1st Year Deduction: $260,000
(250,000 + $10,000 = $260,000)
Tax Savings Assuming Rate of 35%: $91,000
($260,000 x .35 = $91,000)
1st Year Net Cost after Tax Savings: $209,000
($300,000 – $91,000 = $209,000)
*see your accounting professional for details
KenQuest Medical can help you get the needed equipment for your office that will qualify under the Section 179 deduction. For more information please give one of our sales staff a call at (888) 316-2205.