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| Economic Stimulus Package 2008 Example |
| Purchase Price of Property: |
$ 250,000.00 |
| Building Value |
$ 50,000.00 |
| Percentage of Chattel: |
10% |
(8%-12% is average) |
| Value of Chattel: |
$ 25,000.00 |
| Tax Bracket Assumption: |
30% |
| Economic Stimulus Package Advantage |
| Accelerated Depreciation Deducation for Tax Year 2008 |
$ 12,500.00 |
50% of Chattel Value Depreciated in 2008 |
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|
| Potential Tax Savings (see tax bracket above) |
$ 3,750.00 |
|
| Remaining Depreciation from Chattel Appraisal (remaining 50% of chattel value is depreciated on normal 5 year schedule) |
| |
Depreciation Deductions |
Tax Savings |
| Year One (20%) |
$ 2,500.00 |
$ 750.00 |
| Year Two (32%) |
$ 4,000.00 |
$ 1,200.00 |
| Year Three (19.2%) |
$ 2,400.00 |
$ 720.00 |
| Year Four (11.52%) |
$ 1,440.00 |
$ 432.00 |
| Year Five (11.52%) |
$ 1,440.00 |
$ 432.00 |
| Year Six (5.76%) |
$ 720.00 |
$ 216.00 |
| Return on Investment Calculations |
| Cost of Appraisal |
$ 995.00 |
|
| Reduction in cost due to deductibility |
$ 298.50 |
|
| Net Cost |
$ 696.50 |
|
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| Return on Investment |
Total Potential Tax Savings |
Return On Investment |
| Year One |
$ 4,500.00 |
646% |
| Year Two |
$ 1,200.00 |
172% |
| Year Three |
$ 720.00 |
103% |
| Year Four |
$ 432.00 |
62% |
| Year Five |
$ 432.00 |
62% |
| Year Six |
$ 216.00 |
31% |
| Please remember that this is only an estimate, and it is based on our experience and the current, proper tax code. We cannot guarantee these results, however they are based on conservative numbers. This is not tax advice and should not be taken as such. Always consult your CPA when employing a new tax strategy. |
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