Tax Credit
| Step 1 – How to Use IRS Tax Form 8826 | ||
| Package Price | $6,450 | |
| Minimum amount for tax credit | -$ 250 | |
| $6,200 | ||
| Divided by 50% = | $3,100 | |
| Step 2 – How the Normal Equipment Write-Off Works | ||
| Package Price | $6,450 | |
| Minimum Direct Credit (above) | $3,100 | |
| Multiply Your Tax Rate 28%* = | x .28 | |
| Equipment Write-Off Amount from section 179 | $ 938 | |
| *28% tax rate used an example. Rates may vary from 15% to 38% based on your tax bracket. | ||
| Step 3 – Calculate Your Total Tax Relief | ||
| Add Direct Credit sec 44 (step 1) Plus Equipment Write-Off sec 178 (step 2) | $3,100 | |
| Plus Equipment Write-Off sec 178 (step 2) | +$938 | |
| Total Tax Relief | $4,038 | |
| Step 4 – Subtract Your Total Tax Relief from Original Sale Price | ||
| Original Package Price | $6,450 | |
| Total Tax Relief | $4,038 | |
| $2,412 | ||
| Your Cost of Model 800 STP Package after Tax Relief* | $2,412 | |
| *Not Including Shipping cost |
This credit is avalible according to Section 44 of the Internal Revenue Code. To qualify, the profesional’s practice must meet the following requirements: 1) Annual Gross reciepts of the practice do not exceed $1,000,000 or 2) the practice employs no more that 30 full time employees during the taxable year in which the credit is elected. 3) The equipment cannot cost less than $250 and cannot cost over $10,250.
Remember to consult your tax advisor to make sure you Qualify