Industry > US & World Business Conditions
Tax law altered for 2008 can mean big savings!
Section 179 of the Internal Revenue code allows for a business deduction of $125,000 for capital expenditures (including new and used machine tools) up to an overall yearly investment limit of $800,000. To claim the deduction in this calendar year, your equipment must be placed in service before December 31, 2008.
The investment limit of $800,000 is, however, a hard cap; every capital dollar spent above that amount will reduce your Section 179 deduction by a dollar. For example, if you spend $820,000 on capital equipment this year, your deduction would be reduced by $20,000 ($820,000 - $800,000), which would limit your overall 179 deduction to $105,000 ($125,000 - $20,000).
This new tax code can mean substantial savings for anyone looking to buy machine tools. Please click on the links below for more details about how Section 179 can benefit your business.
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