Dexter Laundry – Economic Stimulus Information for Laundry Owners

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For more information on the Economic Stimulus Act of 2008 contact your local tax professional.

To learn more about how Dexter Laundry Equipment can improve your business, click here to find the Dexter Authorized Distributor nearest you.

Economic Stimulus Act of 2008
What this important new legislation means to laundry owners.

Brenneman Laundries, Inc. Lima, OH

Laundry by Teeters Products

With the “normal” tax season behind us, the federal government is busy sending out economic stimulus checks to most individuals. These funds will certainly be a help to many coin laundry customers who have been negatively impacted by rising food and energy costs. While these checks are the most visible part of the Economic Stimulus Act of 2008, they are not the most meaningful for most laundry owners. Included in this legislation are important and valuable tax incentives for business investment. It’s important that commercial laundry owners be aware of this information so that they can evaluate the potential benefits to their business.

As a laundry equipment manufacturer we are not in the business of giving tax advice, but as commercial laundry professionals we have an important responsibility to be a resource for our customers and to pass along important information such as this that can benefit laundromat owners.

Below are just a few details on the Economic Stimulus Act of 2008 and how it can impact you as a coin-op laundry owner. For more details on how this act can impact your individual business situation, please consult with your tax advisor. For more information on Dexter laundry equipment, please contact your Dexter Authorized Distributor.

How it Can Impact Your Business

Under the Economic Stimulus Act of 2008, the federal government made 2008 a great year to invest in new equipment for your business. This legislation significantly increases a laundry owner’s purchasing power when it comes to buying new equipment under Tax Code Section 179 and/or the 50% bonus depreciation provision.

The Section 179 deduction has almost doubled for the 2008 tax year* (from $128,000 to $250,000). There is also 50% bonus depreciation available for assets placed into service during the 2008 calendar year that a business can take advantage of once the Section 179 limit is reached or in the event that your company does not qualify to use the Section 179 deduction. This combination of benefits makes purchasing equipment in 2008 a very attractive option.

How attractive? Shown below is an example of how these two provisions can combine to dramatically increase the first-year write-off of a significant equipment purchase:

Cost of Equipment:	$300,000
Section 179 Deduction:	$250,000
50% Bonus Depreciation Deduction: (On any remaining amount above $250,000)	$25,000
Remaining Regular 1st Year Deduction:	$5,000

Total 1st Year Deduction:	$280,000

Do these numbers interest you?

They can look even better with great-performing laundry equipment and attractive financing. With the availability of these tax incentives, the time is right to consider investing in new Dexter washers & dryers. New great-looking, energy-efficient Dexter equipment can help you stay in control of rising utility costs, and give your laundry a great modern look. And with the wide range of attractive financing options offered by Dexter Financial Services (www.dexterfinancial.com), there’s never been a better time to turn your existing laundromat into the laundry you’ve always wanted.

There are some limits to Section 179. The total cost of the property that may be expensed cannot exceed the total amount of taxable income during the tax year. However, any cost not deductible in one year under Section 179 because of the income limit can be carried into the next year. In addition, the benefits of Section 179 start phasing out if a company purchases over $800,000 of depreciable assets during the 2008 tax year. Not all states follow federal law; contact your tax advisor for further details.

Most types of business equipment qualify for Section 179 expensing allowance, including:

Tangible personal property (machines, equipment, furniture, etc.)
Business vehicles with gross weight of 6,000 pounds or greater (which included many trucks, SUV’s, etc.)
Certain other tangible property used for specific purposes
Single-purpose agricultural or horticultural structures
Certain storage facilities

* Note: the Section 179 deduction is determined based on your tax year, so companies utilizing a fiscal year can use the enhanced deduction for assets acquired during their fiscal year beginning in 2008.

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