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IRS Section 179 Reminder - PPA Today

IRS Section 179 Reminder

Have you purchased new equipment in 2010? If so, don't forget to take advantage of IRS Section 179!

What exactly is IRS Section 179? It's a deduction that allows you to expense almost any type of new equipment (including software) that you use in your business, as long as it is placed in service by December 31, 2010. This means that the entire cost of the qualifying equipment will be deducted from your current 2010 taxable income.

There's still a little time for you to buy new equipment and put it in use to qualify for the Section 179 deduction, too! If you're a PPA member and you do need new equipment, PPA Affinity Partner United Funding can help you get it with very little out-of-pocket cash. (And since United Funding doesn't report to the credit bureaus, your credit scores or ratios will not be adversely affected.)

Here is an example of the money that you can save by taking advantage of Section 179. Keep in mind that this example is only intended to explain the tax benefits under this provision. It is advised to consult with your tax professional to determine the accuracy of the calculations and the best structure for you.

 

Without Using Section 179

Example 1

Example 2

Original Taxable Income

$80,000

$80,000

$80,000

Equipment Cost

 

$15,000

$30,000

New Taxable Income

$80,000

$65,000

$50,000

Marginal Tax (Assumed)

25%

25%

25%

Out of Pocket Payments for 2010 (12/1/2010 install)

 

$725.10

$1,424.40

Tax Savings

$0

$3,750

$7,500

And don't forget that PPA members get a 2% rebate of the cost of equipment with United Funding! Learn more about this member benefit--getting started is as easy as completing the online credit application.

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This page contains a single entry by Professional Photographers of America (PPA) published on December 28, 2010 6:21 PM.

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