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Buy a truck this year and save with 50% Bonus Depreciation! |
Thinking of buying a new truck this year?
Let us help answer your questions.
The need to run smart and have
smart financing has never been more important than it is today!
The American Recovery and Reinvestment Act of 2009 affords
significant opportunities for purchasers of tractors, trucks and
trailers to reduce their current year’s taxes and upgrade their
current
equipment.
Why should I buy a truck this year?
The tax stimulus legislation has tax benefits that are only available if you acquire
your truck in 2009. The extension of the 50% Bonus Depreciation expires December 31, 2009.
What are these tax benefits?
Bonus Depreciation: Additional first-year depreciation of 50% of the asset’s purchase cost.
For a tractor that means 66.67% of the assets cost can be expensed in the year of
acquisition, or 2x the standard allowable depreciation (MACRS - 3 year asset
with
half year convention = 33.33%).
Sec. 179 Expensing Allowance: In lieu of depreciating the asset’s cost, companies can expense up to $250,000 in equipment purchases as long as they don’t spend more than $800,000 in 2009 defined as tangible property (tractors, trucks and trailers) which is acquired by purchase for use in the active conduct of a trade or business.
How can these tax benefits help me?
The benefits can reduce a business’s tax bill by increasing their short-term tax deductions with the use of a Sec. 179 expense allowance
and/or Bonus Depreciation benefit for eligible equipment acquired in 2009.
Generally speaking, the first year’s tax deductions for an asset
acquired in 2009 will be substantially greater than those for an asset acquired in 2010 under terms of the American Recovery and Reinvestment Act of 2009.
In this economy, it is important now more than ever to find ways to save money on your purchases, small and large. We understand your budgetary
needs and wants you to save money and save on taxes, by utilizing the 2009 Bonus Depreciation and the Expensing Allowance. Let us be the partner you can rely on to get your trucks,
buses and vans on the road. |
Our Suite of Programs* put you in control of financing your next new or used vehicle from LA Freightliner.
Owner Operator Advantage
• Designed specifically to give
Owner Operators an edge
• Zero down payment options
• Up to 45 days to first payment
Vocational Advantage
• Extended terms for Heavy and Medium
Duty trucks
• Seasonal payments
• Up to 60 days to first payment
TRAC Advantage
• Traditional TRAC or our unique
Zero TRAC options
• Lease financing
• Unlimited mileage |
A Trucker’s Perspective - Example for comparative purposes only*
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2009 |
2010 (estimated) |
| Purchase Price |
$500,000 |
$500,000 |
| Sec. 179 Expense Deduction |
$250,000 |
$125,000
(indexed to from 1997) |
| 2009 Bonus Depreciation |
$125,000 |
$0 |
| Standard MACRS Depr. (3-year) |
$41,663 |
$124,998
(YR 1 MACRS = 33.33%) |
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| Total Deduction in year of purchase |
$416,663 |
$249,988 |
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2009 Total Expense is GREATER by $166,675 or 67% |
*savings are estimated amounts for comparative purposes only. Customers should always
check with their financial or tax representative for proper tax and financial reporting treatment, and actual savings.
Not all customers will qualify. Actual rates, terms and down payment will be determined by
Crossroads Equipment Lease & Finance’s credit team based on credit worthiness and experience of the customer. |
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Depreciation Bonus At A Glance
- Sec. 1201 of the 2009 American Recovery and Reinvestment Act (ARRA) allows additional first-year depreciation of 50 percent of purchase cost by extending for one year the depreciation bonus created by the 2008 Economic Stimulus Act Depreciation bonus helps businesses that buy equipment this year cut their 2009 tax bill Applies, among other things, to purchases of tangible personal property (including construction, mining, forestry, and agricultural equipment) with a MACRS recovery period of 20 years or less Equipment must be purchased and placed in service in 2009 Equipment must be new Allowed for both regular and alternative minimum tax purposes Discretionary - Taxpayer need not claim the depreciation bonus
- Depreciation bonus will expire at end of 2009
Sec. 179 Expensing At A Glance
- Sec. 1202 of the ARRA extended for one year the increased Sec. 179 expensing limit of $250,000 and phase-out cap to $800,000 Companies can expense up to $250,000 in purchases as long as they don't spend more than $800,000 Expensing is phased-out for each dollar that purchases exceed $800,000 Companies with total purchases of $1,050,000 cannot use Sec. 179 New and used equipment is eligible for expensing Applies to tax years that start in 2009 Can be combined with depreciation bonus
- Sec. 179 expensing levels will drop at end of 2009 (without ARRA, the 2009 expensing amount would be around $130,000 and the phase-out level would be around $500,000)
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