# Thread: Shortcut calculation for tax savings on capital expenditure

1. ## Shortcut calculation for tax savings on capital expenditure

Hi

Say,

Machinery = $400,000 Useful life = 4 years Capital Allowance Rate = 25% Corporation Tax Rate = 35% Scrap Value =$5,000

Do you know any short cut that being used to calculate the total tax savings amount?

I only know till certain steps. ie 40,000 x 0.25 x 0.35 x 0.75 x 0.75 x....?

Will appreciate the help

Thanks

2. Originally Posted by mingali
Machinery = $400,000 Useful life = 4 years Capital Allowance Rate = 25% Corporation Tax Rate = 35% Scrap Value =$5,000

Do you know any short cut that being used to calculate the total tax savings amount?

I only know till certain steps. ie 40,000 x 0.25 x 0.35 x 0.75 x 0.75 x....?