Business Tips from Chris Manley, President of Graphco
A Business Owner’s Guide to Maximizing Cash Flow While Investing in Revenue-Generating Capital Equipment such as High-Quality Digital & Offset Printing Equipment, Supplies & Accessories.
Like your company, Graphco is a highly successful mid-size firm that realizes each day we need to keep competitive. To do so we continue to offer our customer’s the finest in digital print and finishing solutions, training and unprecedented technical support. To do so, we need to invest in our company. By investing in our company, we are really investing in you, our customer.
Here are some valuable tax tips that might help you better understand the opportunities available to invest in new capital equipment while enjoying tax benefits. Remember, no one is a better source for guidance and counsel than your own certified tax advisor & financial advisor.
What is Section 179 in the U.S. Tax Code and how does it affect business owners?
As of January 1, 2013, Congress continued to refine Section 179 which originated in the 1980s. Now, you can realize even more valuable tax savings. Specifically, the deduction limits and bonus depreciation have been increased and extended, with potential benefits for your business equipment and most software purchases made last year and in the coming year.
What are the specific updates to Section 179 for 2012?
The Section 179 amount increased from $139,000 to $500,000.
• This allows you to realize more tax savings on qualifying equipment purchases (see below) made in 2012 and 2013.
• The limit on capital purchases was extended with the deduction limit to $2 million for 2013, up from $560,000.
• Bonus depreciation for new equipment purchased will remain at 50 percent.
• Qualifying equipment must be new, used in the U.S. and placed into service by the end of 2013. (thumbnail pic of equipment)
QUALIFYING PURCHASES including Digital Print & Finishing Equipment and Accessories:
• Office furniture
• Office equipment
• Large manufacturing tools
• Large business vehicles*
• Air conditioning equipment
• Heating equipment
• Property used to furnish lodgings
• Property used outside the U.S.
Cost of MGI Meteor Meteor DP8700 SL $304,750
1st Year Depreciation
• Section 179 $304,750
• Bonus Depreciation $0
• MACRS Depreciation $0
Assuming a 35% Corporate Tax Bracket
Net Savings $106,662
Net Purchase Price $198,088
How You Can Take Advantage of Section 179?
In 2012 at Graphco, we made a concerted effort to retain liquidity while keeping technology systems up-to-date, and maximizing on processes & efficiencies. Into this new tax year, tax benefits and bonus depreciation continue to make this possible.
With 100% financing available quickly with the right credit rating, flexible structures, and perhaps the most competitive rates our country has ever seen, now is the time to put high-quality digital and offset equipment on your production floor. And, while doing so, you’ll be providing a positive net benefit to your cash flow.
Our leasing specialists will be able to guide you as to how Section 179 effects lease or buy scenarios; but call me today so we can sit down and do an equipment analysis to see how to make this year the one that you are investing in your customer base, and you. Whether it’s equipment purchases or leases, let the professionals devise an action plan to make it work.
And let me and my team at Graphco get you poised with the competitive advantage you’ll need to continue to prosper and grow.
Call me today, Chris Manley, at 800-458-2769.
For More Information Please Read:
A Business Owner’s Guide To Understanding Section 179opens PDF file