Learn More About Tax Savings on Your Laser Equipment
Death and taxes. We can’t escape either, but there are ways to minimize the latter. And if you move really fast, you could still save on your taxes by purchasing your new laser equipment before the end of the year. To benefit from the enhanced Section 179 tax deductions this tax year, however, you’ll need to place your order right away and start using the equipment before the end of the year.
Section 179 Tax Enhancements
This section of the tax rules has been given a bit of a boost for 2012 and 2013 as part of last year’s Taxpayer Relief Act, also known as the “fiscal crisis” bill. The limits are much, much higher, having gone up from a $125,000 deduction limit to $500,000. There’s also a 50% bonus depreciation allowed for 2013, which means you can write off anything you buy this year so much faster. You can use the deduction for new or used capital equipment - laser welding, laser marking and laser cutting equipment fall under this category.
Potential Tax Savings on Your Laser Equipment
By buying your laser equipment now and commissioning it before the end of the year, you get to take advantage of significant tax savings. For example, on a qualified purchase of $25,000 or more you could save almost $9,000 in taxes as a result. And of course, if you lease the equipment you can also claim your payments for the year as well as any interest you pay. The IRS is also offering a Bonus Cash option of $179 per $10,000 financed, whether you buy or lease the equipment – as long as you do it before the end of the year!
Qualifying Purchases
That’s all very well, you say, but the IRS is notoriously complex and not everything is likely to qualify for this tax benefit. So here’s what applies:
- All new capital equipment and machinery purchased for business use
- All computers
- All “off the shelf” software
- Office equipment
There are obviously other categories too, but in terms of laser equipment and the computer programs you use to operate it these are the most applicable.
Saving on Lease Purchases
The option to purchase on a lease basis is a great way of getting the laser equipment you need without laying out a chunk of your hard-earned cash. Instead of paying in advance for your asset, you pay for it as it works to earn you money. And with our financing options, you can buy laser machinery without any down payment required.
Here’s an example of what you could expect to pay on lease financing for equipment of $25,000:
Now, factor in the $179 per $10,000 financed for an indication of your Section 179 cash bonus.
No Payments Until Next Year
Section 179 might or might not be extended into 2014. At this point that’s an unknown factor, but with suitable financing you can take advantage of this Section 179 opportunity. By buying your laser equipment now through LaserStar, you can get the assets you need with no down payment and also avoid having to make any monthly payments until 2014. This gives you a break over the festive season and helps compensate for any loss of productivity caused by being closed over the various holidays.
With these options, you’ve got nothing to lose and everything to gain by making your laser equipment purchases right away and getting them into production before year-end. Call one of our technical experts today, to find out what you can do with this benefit – before it’s too late.
Note: Lease payments are subject to change based on credit worthiness.
