Super Lawn Trucks

News & Press

2011-09-05

Save $20,825 on the Purchase of a Super Lawn Truck System, Right Now!

How to Save $20,825 on Your SLT Purchase

Business owners who acquire equipment for their business: machinery, trucks, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at at time over a number of years. The deduction is known by its section in the tax code, a Section 179 deduction.

Section 179 Tax Deductions Re-Signed and Increased!
In 2009 Section 179 of the IRS tax code allowed business owners to write off vehicle purchases and leases as tax deductions up to a maximum of $250,000.

These expired Dec 31, 2009, however H.R. 5279 (The Small Business Jobs and Credit Act of 2010) was recently signed, allowing the deductions for 2010 and 2011 to be increased to $500,000 as well as restoring the 50% Bonus Depreciation for 2010-11.

Under section 179, businesses that spend less than $530,000 a year on qualified equipment, may write-off up to $134,000 in 2010 & 2011. The rules are designed for small companies, so the $134,000 deduction phases out when a business purchases more than $530,000 in one year. Companies cannot write off more than their taxable income.

One quick note: You can carry section 179 tax deductions forward if your taxable income is lower than the total tax deduction. We suggest you speak with your CPA to see exactly how much money you can save in 2011 using the section 179 tax reduction strategy.

Here is one example:

Cost of Equipment $59,500

Section 179 deduction $59,500

Cash savings with 35% tax bracket $20,825

Adjusted cost of equipment $38,675

This saves you $20,825 this year!

Please note: This example assumes a federal tax bracket of 35%. Many states have income taxes as well. For example, Georgia has a 6% state income tax. This means that a profitable company could face a total income tax of 41%. So your actual tax savings could be greater than the example above.

This incentive is only available through December 31, 2011. Acquire your equipment now, don't put it off until 2012, and save yourself a pile of money.

Please, always talk to your accountant for tax advice.

Here is where financial planning really pays. You can purchase the truck before Dec 31, 2011 and take the right off saving you $20,000+ in taxes.

If you choose the 60 day or 90 deferred payment finance option, you could avoid out of pocket payments until Spring gets here. This can help you get the equipment you need to grow your business without hurting cash flow in your slower winter months.

Your SLT sales person can see if your company would qualify for this type of program.

Call Super Lawn Trucks for year- end specials on new and used Super Lawn Trucks.

866-923-0027