New York, NY (December 1, 2004)–Audio professionals and facilities looking at major equipment purchases may wish to move quickly to take advantage of a tax break closing at year’s end. For major single pieces of equipment purchased and installed before January 1, 2005, significant deductions and accelerated depreciation can, in the right circumstances, result in substantial tax reduction, effectively reducing the price of the purchase. A tax professional should be consulted to determine if the special depreciation allowance would be of benefit in any given situation.
“We have customers taking advantage of the bonus,” commented Phil Wagner, SSL senior VP. “The depreciation bonus represents a significant additional tax deduction for new equipment put into service by the end of 2004.”
Bonus depreciation is a timing mechanism designed to allow increased upfront depreciation in lieu of the standard depreciation schedule. In one published example, $100,000 of a $150,000 purchase was allowed to be expensed, with an additional $30,000 able to be claimed as combined accelerated and first year deductions, leaving only a $20,000 balance for a normal deduction schedule. Again, individual circumstances may affect how these allowances would affect any individual or corporate tax return, and purchasing decisions should be made after seeking professional advice.