Qualified Financing

Using Section 179 with an Equipment Financing Agreement might be the most profitable decision you make this year.

Why? Because the taxes you save with the deduction will almost always exceed your cash outlay for the year when you combine (i) a properly structured Equipment Finance Agreement with (ii) your Section 179 deduction.

Use this page as a guide to combining Section 179 with financed equipment. You’ll see it is not only a bottom-line enhancing tool that allows you to add new equipment, vehicles, and/or software to your business, but it also directly allows you keep more of your hard-earned money by paying fewer taxes.

Contributing to your bottom line, the financing Section179.org recommends comes with a ‘$179 Bonus per $10,000 Financed’ for a limited time during the 2023 calendar year.

This means that you (a) get your equipment, vehicles, and/or software now, (b) get to take full advantage of the Section 179 deduction in 2023, and (c) get bonus cash as well.

Click this link for details: Section 179 Qualified Financing Plus Bonus

The obvious advantage to financing equipment, vehicles, and/or software and then taking the Section 179 Deduction is the fact that you can deduct the full amount of your purchase, without paying the full amount this year.

The amount you save in taxes can exceed the payments you make this year, making this a very bottom-line friendly deduction (you are reading this correctly; in many cases, the tax savings from the deduction will make your bank account larger than if you never financed the equipment in the first place.)

Besides using a Section 179 Qualified Equipment Finance Agreement (EFA) like we’ve been discussing, did you know that your company can also lease equipment and still take full advantage of the Section 179 deduction?

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 up to the deduction limit worth of equipment this year, without actually spending that amount this year.

In other words, a small business that is managing cash flow can leverage a non-tax capital lease to minimize out-of-pocket cash, and still take the full Section 179 Deduction.

Examples of non-tax capital leases include a ‘$1 Buyout Lease’ and a ‘10% Purchase Upon Termination (PUT) Lease’. In many cases, the amount you save in taxes will be MORE than the total of your first year’s payments.

Contact a Section 179 Qualified Equipment Finance Lender to help you structure your equipment financing agreement to take full advantage of the benefits of Section 179. We recommend Section179.Org underwriter Crest Capital for this. If you have any questions, or simply wish to explore your options, contact them toll-free at (800) 245-1213 or visit www.CrestCapital.com.