Fast, temporary tax relief
If you've recently bought new machinery or plan to do so soon, you can speed up the depreciation and increase tax deductions as written in the economic stimulus bill recently signed into law. But there's a catch. Because the legislation is retroactive to September 10, 2001, you may need to file an amended tax return to maximize tax savings.
The legislation also has a provision allowing an extension to the carryback period for losses. The previous carryback period of two years is now extended to five years.
The tax incentives in the bill are a limited-time offer, covering September 10, 2001, through September 11, 2004.
The Association of Equipment Manufacturers is applauding this “capital depreciation bonus” as a potential boon to the manufacturing sector.
MachineryLink now offers a new lease program that allows growers to lease equipment for a certain number of hours and specific dates.
The Innovation Managed Lease Program offers a three-year shared lease arrangement for major brands of combines. The lease includes repairs, maintenance and transportation. A grower leases the equipment for the number of hours he needs to harvest his crop and reserves the dates he needs. When the grower is finished with the harvest, the equipment is transported to the next farmer. MachineryLink reports that farmers who use combine equipment less that 350 hrs./yr. can realize significant savings by leasing a combine through this program as opposed to buying a machine. Check out the equipment cost calculators and other resources at www.machinerylink.com or call 800/713-5618.