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HOME | FREQUENTLY ASKED QUESTIONS | |
![]() Leasing and Section 179 Did you know that your company can lease equipment and still take full advantage of the Section 179 deduction? In fact, leasing equipment with the Section 179 deduction in mind is a preferred financial strategy for many businesses, as it can significantly help with not only cash flow, but with profits as well.
Non-Tax | Capital Lease
The main benefit of a non-tax capital lease is that you can still take full
advantage of the Section 179 Deduction, yet make smaller payments. With a
non-tax capital lease you can acquire and write off $250,000 worth of
equipment this year, without actually spending $250,000 this year. A
small business that is managing cash flow can leverage a non-tax capital lease
and still take the Section 179 Deduction.
Equipment Financing You may also obtain an equipment loan using an Equipment Finance Agreement (EFA) and still take the Section 179 Deduction.
Advantages of Leasing and Financing The obvious advantage to leasing or financing equipment and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction (you are reading this correctly – in many cases, the deduction will actually be profit.)
Speak to an Expert
An experienced equipment finance company can help you structure your equipment
lease (or equipment financing agreement) to take full advantage of the
benefits of Section 179. We recommend Crest Capital for this. If you have any
questions, or simply wish to explore your options, contact Crest Capital at
800-245-1213 or visit them online at
www.crestcapital.com.
Section 179.org This website was designed to answer your questions regarding the Section 179 Deduction, and to explain the impact the Economic Stimulus Act of 2008 (H.R. 5140) has had on Section 179. The information on this site will clearly explain the Section 179 Deduction in plain terms; will go over what property qualifies under Section 179 for the deduction; and will explore the myriad of ways the Section 179 deduction can impact your bottom line. In addition, there are links to IRS forms, and also tools for you to use, like the free Section 179 Deduction calculator. |
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