Great news! Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy or lease a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves. Businesses can write-off up to $250,000 of qualified equipment and software during the 2010 tax year. Use the Section 179 Calculator to see how much you can save on new equipment purchases.

Section 179 Calculator for equipment $250,000 or less. If greater, contact a Stearns Bank representative at 1-800-247-1922.

Results

Section 179 Deduction:

Total first year deduction:

Cash savings on equipment purchase (assuming a 35% tax bracket):

Lowered cost of equipment after tax savings:

Always contact your tax advisor to verify tax or accounting issues or visit www.irs.gov for specific details.