Economic Stimulus Act (Section 179) Calculator

Savings Calculator for 'New & Used' Equipment Purchases
2010-11 Tax Incentive (Section 179)

The US Government has extended the tax incentive for New and Used Equipment Purchases - Section 179 - through 2011. This section will allow you to deduct from your tax liability the full purchase price of equipment purchases (up to $500,000). It also allows for first-year 50% bonus depreciation for any over-limit equipment. This means substantial, immediate tax relief for your business and makes financing needed equipment a smart financial move. Taking the tax deduction today, for something you are paying for tomorrow, is always a good deal.

Use the calculator below to get an idea of your potential deduction. Questions should be referred to IRS Section 179 Expense.

Total Purchases you plan to make in 2011	$
Negative and zero entries will not calculate!
Tax Bracket

Section 179	$0.00
50% Bonus Depreciation	$0.00
Normal 1st Year Depreciation	$0.00

Total First Year Deduction	$0.00

Estimate of Tax Savings for 2011	$0.00

Important Customer Notices

The depreciation schedules stated below are available through 2011.
These examples should not be taken as actual accounting results, they are simply used as a guide.
OVS, its affiliates, and employees do not offer or provide Tax, Accounting, or Legal services.
Customers should always consult a qualified tax advisor.

2010-11 New Ag Equipment Bonus Depreciation Schedule
Year	Allowable %
1	57.50%
2	12.75%
3	8.93%
4	8.33%
5	8.33%
6 ***	4.165% *
*** The 5-year schedule actually becomes 6 years because of the 'Half-Year' convention

Current Ag 5-Year Schedule
Year	Allowable %
1	15.00%
2	25.00%
3	17.85%
4	16.66%
5	16.66%
6 ***	8.33% *
*** The 5-year schedule actually becomes 6 years because of the 'Half-Year' convention

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