|
2008 Economic Stimulus Package Sample
Stimulus package
allows for increased Section 179 Expensing for
businesses:
Now up to a maximum of $250,000 in 2008
Example: $100,000 software investment
| |
2007
Tax Year |
2008
Tax Year |
|
Depreciation Amount |
$33,333* |
$33,333* |
|
Bonus Depreciation |
$0 |
$16,666** |
|
Total Depreciation |
$33,333 |
$50,000 |
|
Potential Tax Savings |
$10,667*** |
$16,000*** |
*Software is treated under tax law as having a 3-year
recovery period for depreciation purposes.
**Stimulus Package allows for 50% depreciation bonus over 3
years. (50% of 100k = 50k / 3)
***Assumes a 32% marginal federal income tax rate
| |
Standard Rate |
0%
Interest Promotion |
|
Investment |
$100,000 |
$100,000 |
|
Interest over 3 years |
$15,655 |
$0 |
|
Savings |
$0 |
$15,655 |
Total Savings: $15,655 (0% Promotion) +
$16,000 (2008 Section 179 Bonus) = $31,655
The time is right to make the
contractERP investment for your company.
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