Balboa Capital Equipment Leasing Tax Calculator
| Balboa Capital has some exciting news to share with you: The Tax Relief and Small Job Act extends both the Section 179 tax deduction for equipment expenditures and the bonus depreciation benefit through 2012. The bonus depreciation has been set at 50% on equipment acquired and placed into service between January 1, 2012 through December 31, 2012. |
Balboa Capital wants you to know that equipment leasing offers your business tax advantages that can't be achieved with a cash purchase or financing through a traditional bank. Balboa Capital finds that most businesses we work with take advantage of tax incentives in order to help lower the true cost of ownership on their business equipment. With such large tax savings available to your business with leasing, now is the time to look to Balboa Capital for an equipment leasing plan.
Tax Code Section 179 Deduction
Balboa Capital is fully aware of the Section 179 deduction and how it can benefit businesses like yours. Under Section 179, businesses can deduct the full purchase price of equipment of up to $125,000 in 2012. The first year bonus depreciation has been set at 50 percent through 2012. The deduction begins to phase out dollar-for-dollar after $500,000, which makes Section 179 specifically designed to help small and medium-sized businesses acquire the equipment they need. Balboa Capital leases all types of business equipment that qualifies under the Section 179 tax code provision. This includes machinery, computers, software and office equipment. Balboa Capital invites you to learn how much you can save in taxes by using our Section 179 Tax Savings Calculator.
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Balboa Capital Wants You To Know The Advantages of Equipment Leasing
There are major tax advantages to equipment leasing depending on the type of lease you decide to choose:
Non-Tax Capital Lease
The main benefit under a Non-Tax Capital Lease is that it can take full advantage of Section 179. Under this tax code provision the government allows small business tax payers the ability to write off up to $125,000 on qualified equipment that is placed into service this year. Through Section 179 a business can significantly lower the true cost of equipment ownership. Examples of Non-Tax Capital leases include a $1.00 Buyout, 10% Purchase Upon Termination (PUT) and a Equipment Finance Agreement (EFA).
Tax Lease / True Lease
With a Tax Lease such as a Fair Market Value (FMV) lease, the lessor retains ownership and as the lessee you can expense the monthly lease payments in the period they are paid as a general operating expense. In most cases the entire lease payment can be fully deductible. For example: Suppose the monthly investment is $2,000 and the term is 36 months (3 years). Assuming a 35% tax bracket, the monthly tax savings would be $2,000 x .35 = $700. Which means the total tax savings over the term of the lease contract would be $700 x 12 months x 3 years = $25,200.
* The lease calculator and tax example scenarios are intended for estimate purposes only. The estimated tax savings may be based on assumptions that do not apply to your specific business tax situation. Please consult your tax advisor to determine the full tax implications of leasing equipment. Additional information on business taxes can be found at www.irs.gov.