Stimulus Package Doubles Tax Advantage of Capital Investments
Bonus Depreciation
For both the regular tax and the alternative minimum tax, the first-year depreciation deduction otherwise allowed on certain qualified tangible personal property acquired and placed in service during 2008 is increased by 50 percent of the cost of such property.
The deductions provided by the asset expense election and bonus depreciation are illustrated by the following example:
Corporation X purchases and places in service machinery (5-year property) in its calendar 2008 tax year having a cost of $650,000, which will be subject to the half-year convention. Corporation X will elect to expense $250,000 under Sec. 179, leaving the machinery with a remaining depreciable basis of $400,000. Applying the bonus depreciation provided by the Act, Corporation X is entitled to a further deduction in 2008 of $200,000 (50% of $400,000), leaving the machinery with a remaining depreciable basis of $200,000. Standard first-year depreciation for 5-year property under the half-year convention is 20%, providing Corporation X with further depreciation on the machinery of $40,000. Accordingly, Corporation X is entitled to a total expense and depreciation deduction of $490,000 in 2008 on its $650,000 machinery. The remaining $160,000 cost of the property is recovered after 2008 under otherwise applicable rules for computing depreciation.
Century Conveyor’s employees are experts in material handling, but not in taxes. We present this update for informational purposes only. It is not legal or financial advice. Please consult your accountant for more information about this exciting opportunity.
Controls Bring Value To Your Operation
- User-friendly Interface - Route, sort or change in an instant
- Seamless Integration - Modular design fits new or existing systems
- 24-Hour Support - We understand your need for minimal downtime
- System Specialization - World wide installed base
Controls specialists build and completely wire all panels
You can't go wrong with Hytrol's Controls package. In addition to the complete pre-engineered software that guides the customer's product through all phases of sorting, Hytrol engineers design, build and wire all electrical panels. They insure that all sortation systems will be "GO" when the button is pushed and the sortation system begins to function. Hytrol also supplies up to 5 days "on-site" for commissioning your sortation controls package.
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ProLogix Sorter ControlControls all devices on Hytrol sorters - induction, tracking, sorting, confirmation photo eyes, etc.
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GapLogix Gapper ControlOptimizes performance of sortation system by reducing wasted space between large products.
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ZipLogix Combiner ControlMaximizes throughput where 2 to 1, 3 to 1, & 4 to 1 combiners zipper product to a single line.
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Plug-N-Go Cabling SystemQuicker, less expensive and more trouble free startup than conventional wiring.
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Call Us Today at 732-248-4900 to discuss your next project!
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