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2014 American Taxpayer Relief Act (ATRA)
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Take Advantage of Section 179 Deductions and Bonus Depreciation for 2014

The 2014 American Taxpayer Relief Act (ATRA) gives businesses an incentive to invest in themselves by purchasing or financing new equipment.

What is Bonus Depreciation?

A 50% bonus depreciation deduction is included in the "American Taxpayer Relief Act" for qualified new equipment acquired and placed in service during 2014.

What is the Section 179 Deduction?

For 2014, business owners of new Bobcat and Doosan equipment may be able to expense up to $500,000 in new capital equipment expenditures. In addition, 50% bonus depreciation may be available in the first year. The benefit applies to equipment purchased by businesses operating as a sole proprietorship, partnership or corporation.

Who qualifies for the Section 179 Deduction?

The American Taxpayer Relief Act allows the 179 deduction of up to $500,000 to companies that purchase less than $2,000,000 in business equipment during 2014. In order to qualify, equipment must be placed into service between January 1, 2014 and December 31, 2014.

Why is this important?

With the enhancements to the Section 179 deduction and the availability of bonus depreciation for the remainder of 2014, qualifying companies can greatly accelerate depreciation on equipment purchases thereby reducing taxes in the current year. The savings drop directly to the bottom line. The examples below show savings if you plan to purchase $125,000 of equipment or $625,000 worth of equipment.

Examples

Average Deal

Large Deal

Equipment Cost

$125,000  

$625,000  

Section 179 Expense Reduction

$125,000  

$500,000  

50% Bonus Depreciation + 20% First Year Depreciation

Not eligible

$75,000  

Potential Tax Deduction

$125,000  

$575,000  

Potential 1st Year Savings (Companies in 35% tax bracket)

$43,750  

$201,250  

Additional Considerations

Used Equipment (that is new to you) qualifies for Section 179, however used equipment does NOT qualify for Bonus Depreciation.

Act Now

Make sure that you take advantage of this opportunity while it's available. The 2014 enhancements offer small businesses a great opportunity to maximize their purchasing power. Consult with a tax professional to verify that your company is leveraging the Section 179 Deduction this year.**

Bobcat Special Offers

Be sure to review our cash back and special finance offers, and then contact your local Bobcat dealer to learn more!

**NOTE: This information is provided by Bobcat as a courtesy to equipment buyers and should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Please contact your own CPA or tax attorney to see how this may apply to your situation.