Quickened Deterioration Advantages - Equipment.


25 views
Uploaded on:
Category: Art / Culture
Description
Quickened Depreciation Benefits - Software . Quickened DepreciationDoes not effect Accounting BooksFor Tax Purposes Only
Transcripts
Slide 1

Suspicions: Purchase: $1,000,000 Put being used 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 affect Accounting Books For Tax Purposes Only

Slide 2

Assumptions: Purchase: $1,000,000 Put being used 9/1/2009 Client Tax Rate 35% Standard Depreciation - 36 month in a row line Prorated for logbook year 4/36 Depr 2009 $111,111 11.1% of the buy Depreciation Under American Recovery & Reinvestment Act (ARRA) Depr Bonus under ARRA half Proration of staying half 4/36 (4/36 * half = 5.5555%) Depr 2009 $555,556 55.5% of the buy 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 affect Accounting Books For Tax Purposes Only

Recommended
View more...