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Business Equipment Tax Savings
Contact or Phone: 248.419.1064
about your leasing and financing needs.


Business Equipment
Business owners who acquire equipment for their business: machinery, computers, 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 hyears. This accelerated deduction is known by its section in the tax code, a Section 179 deduction. Section 179 is a tax code created to help business. By allowing a business to deduct the full amount of the purchase price of equipment (up to certain limits), Section 179 is a fantastic incentive for businesses to purchase or lease equipment this year!

For complete details, or changes to the tax incentives, please visit or contact the IRS helpline at: 800-829-2933

Non -Tax/Capital Lease Benefits
The benefit of a Non-Tax/Capital Lease is that it can take advantage of Section 179 expensive up to $500,000 if the equipment is put in use in 2010. In addition, you may depreciate any excess on the depreciation schedule for that asset. Examples of Non-Tax/Capital Leases:
  • $1.00 Buyout Lease
  • Equipment Finance Agreement (EFA)
  • 10% Purchase Upon Termination (PUT) Lease
Example: Assume you finance business equipment put in use in 2010, and take advantage of SEction 179. Your tax savings could be significant.

2010 Equipment Purchases:     $650,000
1st Year Write Off:     $500,000
(Under the new law, $500,000 is the maximum Section 179 write-off in 2010)
Bonus 1st Year Depreciation:     $75,000
(On remaining value: $650-$500k = $150k x 50% = $75k)
Regular 1st Year Depreciation:     $15,000
(20% depreciation in each of 5 years = $75k x 20% = $15k)
Total 1st Year Deduction:     $590,000
($500,000 + $75,000 + $15,000 = $590,000)
Tax Savings Assuming Rate of 35%     $206,500
($590,000 x 35% = $206,500)
1st Year Net Cost After Tax Savings:     $443,500
($650,000 less all tax deductions of $206,500)

ACT NOW To Stimulate Your Business!

To take advantage of the incentives and the substantial tax savings, your business equipment must be put in use by year end. Please contact your tax advisor to learn about the specific impact to your business.

Interested in Learning More?
Oneworld Business Finance of Michigan can provide you with a free consultation and extend finance solutions so you can acquire the business equipment you need. As a Member of the OneWorld Business Finance (OBBF) Cooperative, we have ready availability of funding during this otherwise difficult period of obtaining credit.

Phone: 248.419.1064 - Fax: 248.553.0508

Contact or Phone: 248.419.1064
about your business equipment tax savings


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