1 / 2

Accelerated Depreciation Benefits - Hardware

Assumptions:. Purchase:. $1,000,000. Put in Use . 9/1/2009. Client Tax Rate. 35%. Standard Depreciation under MACRS. Acquisition year - MACRS. 20%. Depr 2009. $200,000. Under American Recovery & Reinvestment Act (ARRA). Depr Bonus under ARRA. 40%. Acquisition year - MACRS. 20%.

salena
Download Presentation

Accelerated Depreciation Benefits - Hardware

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Assumptions: Purchase: $1,000,000 Put in Use 9/1/2009 Client Tax Rate 35% Standard Depreciation under MACRS Acquisition year - MACRS 20% Depr 2009 $200,000 Under American Recovery & Reinvestment Act (ARRA) Depr Bonus under ARRA 40% Acquisition year - MACRS 20% Depr 2009 $600,000 ARRA Depr 2009 $600,000 Standard Depr 2009 $200,000 Additional Depr $400,000 x Tax Rate x 35% Tax Benefit $140,000 Accelerated Depreciation Benefits - Hardware Accelerated Depreciation Does not impact Accounting Books For Tax Purposes Only

  2. Assumptions: Purchase: $1,000,000 Put in Use 9/1/2009 Client Tax Rate 35% Standard Depreciation - 36 month straight line Prorated for calendar year 4/36 Depr 2009 $111,111 11.1% of the purchase Depreciation Under American Recovery & Reinvestment Act (ARRA) Depr Bonus under ARRA 50% Proration of remaining 50% 4/36 (4/36 * 50% = 5.5555%) Depr 2009 $555,556 55.5% of the purchase ARRA Depr 2009 $555,556 Standard Depr 2009 $111,111 Additional Depr $444,444 x Tax Rate x 35% Tax Benefit $155,556 Accelerated Depreciation Benefits -Software Accelerated Depreciation Does not impact Accounting Books For Tax Purposes Only

More Related