If the answer to that question is yes, then you should seriously consider making those purchases and taking delivery of the equipment before December 31, 2011.
The chart below reflects the huge reduction in what businesses will be able to write-off in the year of purchase. Depending on the tax bracket that you are in a $500,000 equipment purchase this year could save you as much as $175,000 in taxes. In 2012 that same purchase would save you approximately $130,000. You don’t lose the balance of the savings, but it’s extended over the life of the equipment.
So, if you’re considering a purchase, consider making it now. However, be sure and speak with your tax advisor to see how this purchase would impact you based on your circumstances. If you don’t have a tax advisor, our CPA would be available to assist you. Her contact information is listed below.
Here is the summary chart: