How Can Your Manufacturing Company Can Take Advantage of Section 179?!
Tax Benefits of Section 179 plus deferred payment
- How to drastically reduce your tax bill and increase cash flow
- How to delay payment, produce parts until February with no machine cost!
We’ve all seen a lot of articles written on the internet about the Benefits of Section 179. We’ve partnered with Manufafacturers Capital in order to offer you those benefits PLUS a deferred payment that will allow you to buy a machine, get the cash coming off of the revenue of the machine and not pay any cash out for a number of months. Thus, you can drastically reduce your tax bill AND increase cash flow
New machine Purchase (prior to year end for Section 179 Tax Benefit) is $300,000. Now assume (for ease of calculation) that you have $500,000 in EBIT (earnings before income tax). And assume your company is at 30% tax bracket. What you’re going to pay in taxes is $150,000.
EBIT $500, 000
TAX x 30%
Tax liability $150,000
Now lets add a new machine purchase into the equation. New machine cost of $300,000. Deduct that from your $500,000 EBIT (earnings before taxes). Your are now left with a taxable income of only $200,000. Again, assuming for ease of calculation that you’re in the 30% tax bracket, your tax liability is $60,000 (instead of $150,000!).
Taking advantage of Section 179, your tax liability is $60,000 instead of $150,000.
A savings of $90,000! That’s why it’s such a good deal. It’s a dramatic impact on immediate cash flow and tax liability.
EBIT $500, 000
Less Machine -$300,000
EBIT now only $200,000
Tax x 30%
Tax liability $ 60,000
In partnership with Manufacturers Capital, we are combining the tax benefits of Section 179 to a deferred payment plan. This means that you can buy your new machine and not have to make any payments for three months! Now you are reaping the benefits of the immediate Section 179, 0 payments for 3 months on new equipment, PLUS you’re getting 3 months revenue off your new machine.
Tax rules say that your new machine (asset) has to be put in place by year end. Its important to buy now. We have some machines still in stock. Here’s a few of our most popular models available.
For more information on buying or selling used machinery, please contact us. Email: CNCteam@machinemaxx.com or call us at 352-888-6200