The tax portion of the benefits is being presented again to remind you that the purchases and delivery have to occur in 2008. There is pressure being applied to Congress to extend the program, but as of now the original program is still in place. If you still plan to buy, you should do so as soon as possible to ensure timely delivery, and to avoid the pressure of trying to find the unit you want in December.
Time to take advantage
In summary, those of you who plan to upgrade your equipment fleets within the next two years should give serious thought to buying now, because:
- pricing is attractive now;
- you avoid the 10% price increases;
- attractive financing should be available to qualified customers;
- you have Section 179 and the Bonus Depreciation available.
As a side note, the standard 179 and MACRS deductions are $125,000 and 20%, respectively.
The dealer's perfect storm could be your pot of gold. Think long and hard before you let this storm pass you by.
Garry Bartecki is director of dealer/distributor services at BDO Seidman, LLP of Chicago, as well as a consultant to the AED. He has also worked as an independent CPA and consultant to equipment dealers. He can be reached at (312) 616-4677 or firstname.lastname@example.org.