Warehouse Capital Equipment Purchases Write-Off up to $500,000 Plus 50% Bonus Depreciation Expires in 2013
As part of the 2008 US stimulus package, a quick 2013 write-off of $500,000 for new and used automated warehouse material handling capital equipment plus an additional 50% bonus depreciation for new equipment is available to companies that purchase and put it in place by December 31, 2013.
Write-Off Automated Warehouse Acquisitions in 2013
The American Taxpayer Relief Act of 2012 (ATRA) extended Section 179 expensing provisions through 2013. Businesses with up to $2,000,000 of asset additions qualifying as Section 179 property placed in service may elect to immediately expense up to $500,000 of the asset cost. The $500,000 expensing allowance is phased down, dollar for dollar; to the extent the Section 179 additions exceed $2,000,000 in 2013.
The rumor mill is ripe with questions as to what ATRA will do for 2014. Many experts expect the 2013 scenario to be repeated, but the law makers will make that final decision.
US Government Investing In Your Companies Profitability
What does this opportunity mean to your business? By increasing the efficiency of your facility and operations to gain a competitive advantage, the acquisition cost can be converted into a positive cash flow by reducing your company’s federal income tax bill for 2013.
It’s late in 2013, what can you do today? There are a number of new and used types of capital equipment that can be placed in service in under 45 days. Horizontal carousels, Vertical Lift Modules (VLMs), conveyor, fork lifts and racking are just a few technologies which can still be deliverd and meet 2013 requirements.
The Numbers Add Up Fast!
By combining Section 179 allowance plus 50% bonus depreciation plus regular depreciation, you can deduct up to 84% of the assets/acquisition cost in the first year using a seven year depreciation schedule.
Purchase $600,000 of qualifying capital expenditures. The first $500,000 is 100% deductible as long as you do not exceed $2,000,000 in qualified capital expenditures during 2013. The additional $100,000 ($600,000 - $500,000) will be subject to bonus depreciation and you could depreciate 50% or $50,000 during 2013. In addition, you get the normal depreciation. The total additional deduction would be $550,000, section 179 + bonus depreciation. Keep in mind, the $500,000 Section 179 is available for new and used equipment. The 50% bonus depreciation is only available for new equipment.
It’s still not too late to take advantage of Uncle Sam's offer to help increase your profitability in 2014!
Integrated Systems Design - ISD is a leading manufacturer, systems consultant, designer and integrator for warehouse, manufacturing, distribution, wholesale, life sciences, institutions and retail organizations in North America. ISD systems are renowned for their tremendous value, reliability and ease of maintenance. Systems designed by ISD use technologies from the leading material handling manufacturers of the world.
Solutions designed by ISD focus on providing space savings, increased productivity, reduced labor, enhanced accuracy and system flexibility to change as an operation's activities change over time. Utilizing proven technology and off the shelf components helps provide cost effective solutions requiring minimum maintenance and yields a fast Return on Investment (ROI).
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