Tax Savings Lease CalculatorWant to lower the true cost of ownership on your business equipment?
Use our Tax Savings Lease Calculator to find out how. Just input the cost
of the equipment in the shaded box below and click on the Calculate Button.
**As of this writing, we are still praying for Congress to increase the present Section 179 deductions of $25,000 to its 2016 levels!! We are optimistic, so the calculator assumes 2016 deductions. Call us to discuss the present.
Business owners who acquire equipment for their business: machinery, computers, software, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction. Under Section 179, businesses that spend less than $2,000,000 a year on qualified equipment, can write off up to $500,000 in 2016. The rules are designed for small companies, so the $500,000 deduction phases out when a business purchases more than $2,000,000 in one year.(Companies cannot write off more than their taxable income.)
Benefits of a Non-Tax/Capital Lease
Tax Code Section 179 & Election to Expense Detail
This expense deduction is provided for taxpayers (other than estates, trusts or certain non-corporate lessors) who elect to treat the cost of qualifying property as an expense rather than a capital expenditure. Under Section 179, equipment purchases, up to the amount approved for a given year, can be expensed (deducted from taxable income) if installed by December 31st. Non-Tax leases qualify for this deduction in their year of inception. Any excess above the expensed amount can be depreciated depending on the equipment type. Not all states follow federal law. Contact your tax advisor for further detail or visit www.irs.gov for specific detail.
Reminder: To take advantage of the 2016 tax incentives, your business equipment must be put in use by year-end. Each company should contact their tax advisor to learn about the specific impact to your business.
Interested in learning more? We'll provide you with a free consultation and extend finance solutions so you can acquire the business equipment you need. Contact us today at 212-791-2250. Email to email@example.com.
* Assumes a 35% tax bracket.