As the end of 2011 is fast approaching it may be time for businesses to look and see what they have in the way of write-offs and if it makes sense to make a capital expenditure before December 31. The IRS has extended their Section 179 tax incentives through Dec. 31, 2011 which could mean big time savings when it comes to filing your 2011 returns allowing for 100% write-off of new pressure washing equipment purchases.
Below is an example of such savings.
- Equipment Purchase Price $10,000
- Total 2011 Deduction $10,000
- Cash Savings (assuming 35% tax rate) $3500
- Actual Equipment cost after Savings $6500
Be sure to consult with your tax professional in order to make the best financial decision for your circumstance.