click here for more information on Avaya s incentive

click here for more information on Avaya s incentive
Incentive to Invest
Contact your tax advisor
to see if you would benefit
from our “Incentive to Invest”
In 2010, new laws were enacted that extend and enhance tax incentives to stimulate growth and employment
in 2011. Changes to Section 179 deductions and bonus depreciation make it particularly favorable for most
companies to acquire equipment and software needed today. Here are the highlights:
Sec. 179 Deduction Limit - $500,000 in 2011 on new and used equipment and new software (it was $250k
previously)
Equipment Purchases Limit - $2 Million (it was $800k in 2010)
Bonus Depreciation - 100% (usually taken after the $500k deduction limit is reached). This applies only to new
equipment and can be taken when equipment purchases exceed $2 million.
Advantages of Leasing and Financing:
By financing an equipment purchase, businesses may acquire and write off up to $500,000 worth of equipment
without spending $500,000 during that first year. That is because the $500,000 purchase is being financed
through monthly payments. Combined with our attractive finance lease rates, this may provide an opportunity to
acquire the technology you need now.
How Can You Realize Tax Savings?
Be sure to consult a tax advisor to confirm how to use financing to best take advantage of this very generous
incentive.
Section 179 Deduction and Bonus Depreciation
Congress originally created Section 179 of the tax
code to encourage small businesses to buy equipment and spur economic growth by allowing 100%
deduction on purchases up to $500,000. Bonus
depreciation was aimed at providing a similar
incentive for larger companies and applies to
acquisitions that exceed $500,000.
Bonus depreciation is limited to new equipment
and software whereas Sec. 179 can be used on
both new and used assets. There continues to be
no limit on the deduction amount for bonus depreciation.
Typically, companies take the Sec. 179 deduction
first, then bonus depreciation, followed by the
MACRS (Modified Accelerated Cost Recovery
System) depreciation method.*
Finance Lease Rates
Term
Interest
Rate Factor
36
7.99%
.03112
60
7.99%
.02014
Terms & Conditions:
• Available in 36 and 60 month terms
• Minimum eligible amount financed at $1,000
not to exceed $5 million
• 1$PO Finance lease
• VSAF is not eligible for this promotion
• One payment in advance required
• Not applicable for new businesses
• Program expires December 31, 2011 with
funding by March 31, 2011
800 -327-3333 or email
[email protected]
* There are other rules associated with these laws. Please consult your tax and accounting advisors. CIT does not offer or provide tax or
accounting advice
Avaya Financial Services reserves the right to cancel or change this promotion at any time without notice. Standard non-equipment
cost guidelines, credit review, documentation and approval applies. The lease rates provided in this document are for commercial use only.
AFS0061211
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