Tax Benefits

SECTION 179 TAX BENEFIT

Invest in any of MetroConnect's Qualifying Equipment & Software for Fleet Management today and you may be eligible to deduct the Full Purchase Price from your gross income.

 

As part of a program to stimulate the economic recovery and motivate businesses to invest in technology, on September 27, 2010 the U.S. Government signed into law

The Small Business Jobs and Credit Act of 2010 (Section 179)

 


How Does it Work?

Business taxpayers may now generally elect to take an outright deduction of up to $500,000 of the cost of qualifying equipment and software placed in service during a tax year. If the aggregate cost of qualifying assets placed in service during the tax year is greater than $2,000,000 then the deduction is reduced by $1 for each dollar by which the aggregate cost exceed $2,000,000.

 

2013 & 2012 Section 179 Depreciation Deduction Calculator

 

 Cost of Equipment:

 

 

 Section 179 Depreciation Deduction: 

 50% Bonus Depreciation Deduction:
 (On any remaining amount above $500,000)

 Regular First Year Depreciation Deduction:

 Total First Year Deduction:

 Cash Savings on your Equipment Purchase:
 (assuming a 35% tax bracket)

 $ 

 Effective Cost of Equipment after Tax Savings:

$ 

2013-2012 Deduction Limit = $500,000 - Limit on Capital Purchases

= $2,000,000 - Bonus Depreciation = 50%

 

The information contained in this calculator is provided as a public service. It should not be construed as tax advice or a promise of potential savings or reduced tax liability. For more information about section 179 and the depreciation bonus, contact your tax professional.

Section 179 Offers Small Businesses A Great Opportunity To Maximize Purchasing Power, Thus Allowing You To Improve Your Efficiency And Productivity.

 

Qualifying Assets - $550,000

 

Section 179 Deduction - $500,000

 

50% Bonus Depreciation - $25,000

 

20% MACRS Depreciation - $5,000

 

Total First Year Deduction/Depreciation - $530,000
 

 


Small Business Jobs and Credit Act of 2010 (Section 179) Highlights:

 
    • An Increase Of The Total Amount Available For Deduction To $500,000 (Up From $250,000)
    • An Increase To The Total Amount Of Equipment Purchased To $2 Million  (Up From $800,000)
    • The Above Numbers Are To Be In Effect For 2010 And 2011
    • In Addition, The Bill Also Extended The "50% Bonus Depreciation" To The Tax Year 2010

 

Section 179 can change each year without notice, and has even changed mid-year, so take advantage of this generous tax code while it's still available.

 

Check Out MetroConnect's FleetArmor+ Solutions that Qualify for Section 179 Here

 


MetroConnect. Keeping You Informed.

MetroConnect  is providing this information as a public service. We do not warrant or guarantee the accuracy of the content in this website and will in no event be held liable to any party for any damages arising from use of the information contained herein.

While the content on this website may deal with legal issues or interpretation of regulations, it does not constitute legal advice. You are encouraged to consult an attorney who can investigate the particular circumstances of your situation.


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