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Can A Cleaning Equipment Purchase Be A Tax Write-Off?

Posted by Trent Fitzgerald on Jun 30, 2011 2:27:00 PM

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By: WAXIE Editorial Staff  |  June 30th, 2011

Temporary law can mean HUGE tax savings for 2011 equipment buyers

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRJA) extended and expanded the depreciation bonus created in 2008. For 2011, it’s an unprecedented 100 percent; for 2012, it’s 50 percent.

Assume you buy and place in service in 2011 a new NSS Champ 2929 ride-on scrubber costing $15,641. Using bonus depreciation, you can “write off” the full amount this year, reducing your taxable income by $15,641. If you’re in the 35 percent tax bracket, that can reduce your 2011 tax bill by $5,474.

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Here are some important things to remember:

  • To qualify for bonus depreciation, the equipment must be new.
  • The equipment has to be placed in service in the year in which you claim the bonus (2011 for 100 percent and 2012 for 50 percent)
  • The equipment must be depreciable under MACRS and have a depreciation recovery period of 20 years or less.
This information should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. For complete information regarding the Bonus Depreciation bonus, contact your tax professional or log on to the following sites:
www.irs.gov
www.depreciationbonus.org
www.youtube.com/watch?v=zBpFyJVPTcE

WAXIE offfers commercial floor cleaning equipment for a variety of applications. Contact our WAXIE Equipment Specialists online or at (800) 995-4466 to review your cleaning needs.

 

Topics: cleaning equipment, floor cleaning, floor machines, vacuums, hard floor care, pressure washers

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