Posted by Cutworx Admin on 9/23/2022 to Financing
Improve your business’s tax position by using Section 179
Let the IRS help you save money when you lease new equipment through Geneva Capital. At Geneva, we can help you structure your equipment lease to get the best tax advantages for your business. We offer both true tax leases and structures that allow you to take advantage of Section 179.
With a true tax lease, you may have the ability to write-off your monthly lease payments. This type of lease is usually written with a fair market value purchase option, such as FMV 10%. At the end of your lease term, you have the ability to either purchase or return the equipment.
Capital Leases - Section 179
Section 179 is a great way to accelerate your tax benefits. Under Section 179, you can expense 100% of the cost of equipment acquired in 2022 up to $1,080,000. 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 predefined 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).
So...how much am I looking at saving?
That'll depend on the details of your agreement. The example below will give you a ballpark figure of where you could come in, and we also have the tax savings calculator to the right that you can use to get a closer estimate!
*All examples provided herein are for illustrative purposes only. Actual numbers will vary based on credit and individual financial situations. Geneva Capital LLC recommends each customer review their own unique situation with their tax adviser. All transactions are subject to equipment and credit approval.