Tax Lease/True Lease Benefits
Tax Lease/True Lease is another way for your business to prosper with a new or used piece of equipment. It basically works like this: The lessor holds possession of the asset's ownership. The lessee (the business owner) may be allowed to claim the entire amount of the monthly investment as a tax deduction. Many rental contracts qualify as a True Lease including a 10% Option and a Fair Market Value Lease.
Example of True Lease: Assume that you have a Tax/True Lease with a $1,000 monthly payment, the below tax savings that may be available:
Monthly Investment |
$1,000 |
Finance Term |
36 months |
Tax Bracket |
35% |
Monthly Tax Savings |
$1,000 x .35 = $350
|
Total Tax Savings Over Contract Term |
$12,600 |
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To make sure that your asset qualifies, refer to the IRS's Publication 946. If you need advice on leases, such as a Tax Lease of a True Lease, feel free to contact us at 800-604-4817.
Act Now!
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.
If you need advice on how to utilize Section 179 for your business, feel free to contact us at 800-604-4817 or advice@economicstimulusinfo.com.
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