Sauna

Financial Solutions for the Creative Services Industry

Purchase Now and Save Thousands

Posted on by RedThread

I don’t mean to SCARE you but…..
  
Section 179 and Bonus Depreciation benefits are scheduled to expire at the end of this year.  The bonus depreciation benefit will save you thousands if you take advantage of equipment purchases now!
  
Examples of Tax Savings
 

   
Example 1
   
Example 2
 
 
Equipment Cost:
$650,000
   
$80,000
 
 
1st Year Write-Off via Section 179
$500,000
   
$80,000
 
      ($500,000 max.)          
 
1st Year Bonus Depreciation
$150,000
   
$0
 
      (On remaining value)          
 
Total 1st Year Deduction
$650,000
   
$80,000
 
 
Cash Savings
$227,500
   
$28,000
 
      (Assuming a 35% tax bracket)          
 
Equipment Cost After Tax Savings: 
$422,500
   
$52,000
 
             
If there is any question on whether to wait to make that big purchase until next year or now, a major deciding factor to be considered is the Section 179 and/or Bonus Depreciation with an equipment lease.
  
Why Should you Lease?
  • Cash Flow Management: Low monthly payments and minimal up-front cash outlay.
  • Speed: Short one-page application*
  • Flexibility: 100% financing of the invoice.
  • Customized Payment Structures: We are able to offer flexible payment structures such as 90-day deferred, annual payments and skip payments.
  • No Blanket Lien: Only the equipment is required as collateral.  your personal and business assets remain protected.
  • Tax Advantages: Lease payments are usually considered a pre-tax business expense and can often reduce taxes.  Equipment leases qualify for the Section 179 Deduction.**
  • Fixed Payments: Unlike financing with your line of credit, lease payments are fixed.  no matter what happens with the market in the future, your lease terms are locked in.
  • Lines of Credit Remain Protected: Leasing does not impact your credit lines with your bank.  your borrowing power can be reserved for other business needs.
  • Avoid Obsolescence: Leasing affords you the best technology available today and allows the option to upgrade your equipment when it has outlived its use.
  • Competitive Edge: Leasing provides the advantage of using tomorrow’s technology today!
    
    *Subject to credit approval and based on transaction size.  Programs subject to change. 
    **Consult your tax advisor to see how equipment financing affects your tax situation.
     
    Don’t Wait – Finance Equipment Now
     
    The 2012 tax benefits expire on December 31, 2012 and there is no guaranty that these benefits will be extended for 2013.
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