Calculations for Section 179 Deduction

 

Section 179 Deduction Calculator for 2009
Are you considering whether or not to purchase or lease equipment in the current tax year? This Section 179 Deduction Calculator for 2009 may very well help in your decision. The changes in the Section 179 Deduction limits for 2009 are significant, and will save your business a lot of money.

How much money can Section 179 save you?

The new Section 179 Deduction limits will have a real impact on your equipment costs. We have found an easy to use calculator that will help you estimate your tax savings. Simply enter in the purchase price of your equipment, and let the calculator take care of the rest. Please note that this Section 179 Calculator fully reflects the new Section 179 limits brought about by the Economic Stimulus Act of 2008, which were carried through to the 2009 tax year by the American Recovery and Reinvestment Act.

Many leasing company websites have a Section 179 Calculator: just Google it!

This sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased or leased. In the example, $400,000 in equipment purchased has a true cost of $281,000. That’s $119,000 added to your bottom line, which is substantial.

In order to qualify for the Section 179 Deduction, the equipment must be purchased or leased and put into service by December 31, 2009.