Taking advantage of section 179 and the 100% bonus depreciation on new optical equipment before year end makes sound business sense for more reasons than just the savings. Economics teaches that there is a time to buy and a time to save. Savings is more lucrative when rates are high, so stash away your money.
Buying makes sense when interest rates are low. As a way to promote investment and/or tighten the money supply the Federal Reserve bank regulates the prime rate on new purchases. Currently many banks are offering attractive rates. But, this will not last forever. At some point, hopefully soon, the U.S. economy will resemble is former self. All of the incentives by corporations, banks and the government will begin to decline.
Timing is everything, and now is the time to buy. 100% bonus depreciation means that if you purchase new office or optical equipment costing $30,000, you will realize a cash savings of $10,500. www.Section179.org makes it very easy to understand the 100% bonus depreciation via simple to use deduction calculator. The only caveat is that the equipment must be put into service before December 31, 2011 so this Tax Savings – Section 179 reminder is none too soon!
While buying an edger is considered a capital purchase, an edger is actually an investment if it is used properly. Briot representatives enjoy teaching Eyecare Professionals how to do this successfully. Making your optical dispensary a profit center is good business, and right now many incentives are being offering that will help you do this. And, if you have questions about equipment finance, you can call Scott Hillman of Conestoga Equipment Finance at 484-348-6814.