What is Section 179?
Section 179 is a great way to accelerate your tax benefits. Under Section 179, you can expense 100% of the cost of screen printing equipment and digital machines acquired this year up to $500,000 (previously $250,000). Depending on your tax bracket, you can save a portion of that equipment cost in tax savings. To take advantage of Section 179, we can structure your lease with a PUT (Purchase Upon Termination) option at the end of the term, such as $1, or a larger pre-defined amount such as 10% or 20%. At the end of term, equipment must be purchased or the lease renewed to be eligible for this deduction (equipment cannot be returned).
Here is an Example: $45,000 worth of equipment:
60 month lease with FMV 10% purchase option - $985/month
Amount deducted under Section 179 - $45,000
Projected 2012 tax savings (assuming 35% tax bracket) - $15,750.00
All you need to do to get started is fill out the online form here.
* All examples provided are for illustrative purposes only. Actual numbers will vary based on credit & individual financial situations. Geneva Capital LLC recommends each customer review their own unique situation with their tax advisor. All transactions are subject to equipment & credit approval.