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Customer Savings Opportunity Extended into 2011
With the recently passed 2010 Tax Relief Act, now is the time for customers to strongly consider a Mack or Volvo truck purchase. For 2011, the Act increases the depreciation allowance on new purchased equipment to 100% - or 100% bonus depreciation. This means that customers may fully expense a qualifying truck purchase that is placed into service in 2011 in the first year.
How may you benefit? Saves you money - Improves your cash flow - Reduces your tax liability for 2011
An Example In this example, a customer in the 35% tax bracket who purchases a new truck for $120,000 could enjoy an incremental reduction in 2011 taxes of $33,600.
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Sales price = $120K
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MACRS Depreciation
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100% Bonus Depreciation
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Year 1 Depreciation
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$24,000
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$120,000
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Year 1 Tax Benefit
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$8,400
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$42,000
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Note: Customers should contact their tax advisor w/tax questions about potential tax savings & for details regarding 100% bonus depreciation in 2011. This announcement is not intended to provide tax or accounting advice. |