Capital Expense Tax Break!
The Jobs Act, recently passed by the U.S. Government, increases the Section 179 expense limit to $500,000 for tax years beginning in 2010 and 2011. Within this $500,000 limit, taxpayers are temporarily allowed to expense up to $250,000 of the cost of qualified retail improvement property and qualified leasehold improvement property. The $500,000 expense limitation is reduced dollar for dollar by the portion of the cost of Section 179 property placed in service during the year that exceeds a threshold. The Jobs Act increases this phase-out threshold to $2,000,000 for tax years beginning in 2010 and 2011.
Previously, the Section 179 expense limit was scheduled to decline to $25,000 in 2012 and the phase-out threshold was scheduled to decline to $200,000. For tax years beginning in 2012 only, The Tax Relief Act increases the Section 179 expense limit from $25,000 to $125,000, subject to an inflation adjustment, and the phase-out threshold from $200,000 to $500,000, subject to an inflation adjustment.
In addition, The Jobs Act and the Tax Relief Act extend Bonus Depreciation (additional first-year depreciation deduction equal to 50 percent of the cost of certain new property) so that it applies to property placed in service before Jan. 1, 2013. The Tax Relief Act also increases bonus depreciation from 50 percent to 100 percent for property acquired after Sept. 8, 2010 and before Jan. 1, 2012, and placed in service before Jan. 1, 2012.
You will want to have your accountant confirm that if you purchase a thickness gauging system from us this year and have it put into service before Jan. 1, 2012 you can take a 100 percent depreciation deduction on that purchase this year instead of amortizing it over many future years, resulting in a very nice tax break. We expect many customers will take advantage of this deduction this year so our production times may increase. Place your order early to make sure we can ship and commission your gauge purchase before the deadline.
Used Gauge Equipment
From time to time we get requests from customers who want to either purchase or sell used gauges, parts and hardware. While we don’t deal in used items we do keep lists of the companies that contact us and we are happy to help connect sellers to buyers when we can. If you have a used gauge to sell or are looking to purchase one, give us a call and we will do our best to help connect you to each other.
In 2009 we announced our Customer Referral Rewards Program that rewards loyal customers who refer new customers to us. In 2011, we’ve modified that program so that if we receive a lead that results in a new gauge purchase from a company we have not previously dealt with then the referring company will receive a $2,500 credit towards service work, parts, etc… In addition, if you refer a new company to us that signs up for semi-annual service work then you will receive a $1,000 credit. Contact us for details.
Is Your Gauge Safe?
The good news is that spring is approaching. The bad news is that heavy rain and storms come with it. Blackouts, brownouts, electrical strikes and other power surges can be detrimental to your gauge. Be sure that your gauge is protected with an Uninterruptable Power Supply that is in good and working condition. Contact us if you need help testing or replacing your gauge’s UPS or to purchase one if you aren’t currently protected.