The Money Source Tax Savings Calculator

Calculate Your Tax Savings! The Section 179 Allowance
Enter Total Cost of All Equipment Placed In Service During the Tax Year:			The Section 179 expense deduction limit is now $105,000 (through 2005)       Tax Saved During the Tax Year, Assuming a 36% Marginal Tax Rate.
Total Section 179 Deduction:
Regular First Year Depreciation Deduction:
Total First Year Deduction/Depreciation:

SECTION 179 DEDUCTION
Under IRC Section 179, business taxpayers may now generally elect to take an outright deduction of up to $105,000 of the aggregate cost of equipment placed in service during a tax year. If the aggregate cost of qualifying equipment placed in service during the tax year is greater than $420,000, then the deduction is reduced by $1 for each dollar by which the aggregate cost exceeds $420,000. For qualifying assets, the cost of which has not been deducted under Section 179, the remaining cost of the equipment is then depreciable in accordance with the ordinary tax depreciation rules.

REGULAR FIRST YEAR DEPRECIATION DEDUCTION
A 20% first year depreciation deduction may be used for the first year the equipment is in service, assuming a MACRS recovery period of 5 years.

NOTE: This calculator is intended only to allow you to see the potential impact of the tax provisions referred to in a typical situation. It is based on assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemd to reflect a purchase of the equipment (e.g., a conditional sale lease). Please see your tax advisor to determine the tax ramifications of acquiring equipment in your specific situation. The deduction limitations set forth herein are subject to inflation adjustment increases under the Internal Revenue Code - see your tax advisor.