# New $17,000 Anajet for only $5,000!!!



## splathead (Dec 4, 2005)

Thought that would grab your attention 

I just received an email from Anajet reminding me about Section 179 of the Federal Tax Code. 

Basically  you can actually write off 100% of the equipment purchase price, if you purchase and put in use by 12/31. There have been other posts on it earlier in the year, but now time is running out to take advantage of it for tax year 2008. 

Here is an example Anajet gave. This works for any equipment, of course, not just Anajets! 

Your Taxable Income- $85,000 
Your Tax liability at 34% (without printer purchase)- $28,900
Purchase AnaJet: Reduce Income by- $16,950 
Taxable Income is reduced to- $68,050
Tax liability at 25% (when you buy AnaJet)- $17,012 
​ *Savings on Tax Bill- $11,888* *

Effective Cost of AnaJet when you buy this year:- **$5,062*


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## Rodney (Nov 3, 2004)

> Tax liability at 25% (when you buy AnaJet)- $17,012


I know I should talk to my accountant about this, but does anybody have a layman's definition of this line?

Sounds like a good idea for someone looking to decrease their tax liability and purchase new equipment (seems like it would work with any DTG brand, even heat press equipment or screen printing equipment).

Of course, people should consult their tax adviser to see how/if the 100% writeoff would apply to you and your particular purchase.


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## sunnydayz (Jun 22, 2007)

Well I can say for me how it works. I am on a lease and it is 100% tax deductible. If I purchase I believe it is deductable by depreciation over five years, or all at once. I am not sure of the amount that you deduct as depreciation though. That might be that 25%.


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## mrbigjack50 (Jun 9, 2008)

Hmm I bought my anajet with white ink and so on for 11 grand I think


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## cookiesa (Feb 27, 2008)

This is a little off track but is the US government offering any "assistance" packages for the textile industry?

It is often worth keeping an eye on the tax departments site and business development site's.. there are often incentives etc being offered, but you have to know about them! (In Australia anyway!)


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## splathead (Dec 4, 2005)

Rodney said:


> I know I should talk to my accountant about this, but does anybody have a layman's definition of this line?





> Tax liability at 25% (when you buy AnaJet)- $17,012




I believe they are saying you are in the 34% tax bracket with an income of $85,000 but only the 25% tax bracket on income of $68,000.


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## sunnydayz (Jun 22, 2007)

Ooook I think you are totally correct  That makes sense that it would put you into a lower tax bracket.


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## out da box (May 1, 2007)

I would like to know who's doing 85k net profit before taxes. I wanna be you in a few years.


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## THX1138 (Aug 17, 2008)

depreciation for equipment is by the schedule that the IRS sets out. Section 179 allows for accelerated depreciation for companies that purchase small amounts of equipment. So, if the schedule is 5 years, you can depreciate up to $250K in a single year plus your first year depreciation. 

The reference above would lower the tax bracket from a higher bracket to a lower one, but that is not relevant. The end result is your money that you would pay in tax is now going to your equipment. Essentially, you are not saving anything but you are taking part of your tax payments and using it to buy equipment. So, if your tax was $15K and you buy equipment for $15K and your tax is now $5K you would spend $20K ($15K in equipment, $5K in tax), to get $15K in equipment and only pay $5K in tax instead of $15. The hook is you have the opportunity to earn income with the $10K you didn't pay in tax that would have vanished into the black hole of government. The government effectively pays $10K of your purchase.


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## splathead (Dec 4, 2005)

mrbigjack50 said:


> Hmm I bought my anajet with white ink and so on for 11 grand I think


I'm sure they threw in the kitchen sink, although it doesn't specify in the email. Probably includes heat press, stands, ink for a year, pretreatment, etc., etc., etc.


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## artful 1 (Aug 6, 2008)

Sean,
Did you really only pay 11 grand for you machine? Did you buy it new? Would you recommend it?
Which Anajet is it? They are over 20,000 now.


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## zoom_monster (Sep 20, 2006)

I call a TIME WARP on this one. Exactly 11 months!!


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## charles95405 (Feb 1, 2007)

The section 179 is still alive and well... basically any business can deduct 100% of the cost of equipment purchased during the year up to $250,000 ( I think- could be $200,000). You do not need to depreciate over year(s). Leasing allows to deduction the total cost of leasing as well.

BUT be sure to check with your tax advisor!


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## splathead (Dec 4, 2005)

Funny this thread resurfaced again, because I just received another email from Anajet reminding me of the same thing this year:

 Internal Revenue Code Section 179 Deduction: Under the American Recovery and Reinvestment Act, Section 179 Deduction Increase is available through December 31, 2009.

The Section 179 of the Federal Tax Code allows a business to deduct immediately the cost of business equipment purchased and placed in service in 2009. You can actually write off 100% of the equipment purchase price, for up to $250,000 in accumulated depreciation.

Example: 

 Your Taxable Income- $85,000 
Your Tax liability at 34% (without printer purchase)- $28,900
Purchase  AnaJet Sprint: Reduce Income by- $18,450 
Taxable Income is reduced to- $66,550
Tax liability at 25% (when you buy AnaJet)- $16,638 
​ *Savings on Tax Bill- $12,262**

Effective Cost of AnaJet when you buy this year:- **$6,188*


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## DAGuide (Oct 2, 2006)

That is a good layout from an accounting perspective... but as Charles said...talk to your tax professional. Each person's tax situation is going to be different. You might have other tax deductions that can be affected by this as well. In several cases, this will not result in a person paying less (or even better yet getting back) the amount money listed about as a savings. Also, you still have pay the equipment manufacturer or the leasing company (plus interest) the full price of the printer. 

Please note that this applies to almost all types of equipment - not just one manufacturer.

I am not against this, but you need to do you homework first. This can be a real tax savings for the right person. Whether you are the right person is something that a tax professional can tell you.

Mark


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## mrbigjack50 (Jun 9, 2008)

wouldn't buy one for 50bux .. why bother investing in something that just done work, I'd rather buy a 50 dollar epson printer, prob. last longer and make more money Ha


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## 23spiderman (Jun 26, 2008)

i know this is being picky, but...nobody pays the full tax rate. if you're in the 34% tax bracket, you don't pay 34% of your net income. you only pay 34% of the amount that is in that threshold. your tax bracket is determined by the tax rate of your last earned dollar. BUT that doesn't mean you pay that rate on all your income. your actual tax rate is lower. it depends on how you file (single, married/joint, married/separate, etc.) but subtracting 8% from your tax bracket will get you close. for example, on $0 to $X you pay 10%, on $X+1 to $Y you pay 15%, on $Y+1 to $Z you pay 20% and so on. I don't know the exact dollar levels off hand.

so while splathead is correct in theory, the math is wrong. it's still a good idea if you have been considering a new purchase to take advantage of this before the end of the year.

as for me, the AnaJet was the perfect decision. it's made me money every month that i've owned it. (14+ months)


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## charles95405 (Feb 1, 2007)

Sean is exactly right...not many will be in the tax situation that anajet spells out BUT...my purpose is addressing the 179 section is that any of us who buys equipment can deduct all our costs in the year of purchase. In the case of a lease you can only deduct the payments made in the year...but with purchase you can deduct the entire amount.. Not for all but for a lot of us it works well

Again, trying to take the advice of us who may not know what we are saying....would be like trying do-it-your brain surgery...get professional advice


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## splathead (Dec 4, 2005)

23spiderman said:


> so while splathead is correct in theory, the math is wrong.


Just so we're clear, this is not my math. I simply forwarded an email from Anajet. All figures were copied verbatim from their email. I thought I made that clear in my post.

The point of this thread is not to debate the wisdom of buying an Anajet, but to make everyone aware of the tax discount which applies to any equipment.


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## Don-ColDesi (Oct 18, 2006)

You need to assess your situation, if you are not going to show $17,000 in profit this year - you will not realize the full tax benefit. Best thing to do is discuss this with your accountant - and - if you don't have an accountant to help you with these type of matters - GET ONE!


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## equipmentzone (Mar 26, 2008)

As both Don and Joe posted - you should simply run it past your accountant to see if it makes sense for your situation. The tax savings could, if applicable to you, be applied to a purchase of any printer from any manufacturer.

Harry
Equipment Zone


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