Productivity Inc : Economic Stimulus Act 2008 Tax Savings

MACHINES Machine Lines HAAS Factory Outlet Turn Key/Production Ready Financing Special Tax Savings

Economic Stimulus Act 2008 Tax Savings

With the new Economic Stimulus Act of 2008, businesses are able to substantially increase their tax savings. Section 179 deduction limits on equipment have increased up to $250,000, and there is an additional one time 50% bonus depreciation allowed on the remaining adjusted basis. Please refer to the calculator below to give you an idea on your potential tax savings.

CALCULATION OF FIRST YEAR DEPRECIATION (TAX YEAR 2008 ADDITIONS):

Cost of qualifying fixed assets
Section 179 Election (Tax year 2008)	$250,000.00
Bonus Depreciation - 50% after deducting Section 179	$125,000.00
MACRS Depreciation - 7 Year Life, Half-Year Convention	$17,862.50
Total Depreciation/Bonus/Section 179 for First Year	$392,862.50
First Year Tax Impact (assuming taxed at 35%)	$137,501.88
Cost of equipment less first year tax impact	$362,498.13


FINANCING (10% downpayment):

Interest Rate		%
Number of Payments
Monthly Payment (1st of each month)	$8,961.07

Number of Payments the First Year Tax Impact will Cover	15

NOTE: This tax calculator was designed to give you a rough idea of the type of savings you can expect, but in no way should be used as tax advice. To determine your actual tax savings on the purchase of a Productivity machine tool, please contact your tax advisor for further information.

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