Many of the provisions of The
Jobs and Growth Tax Relief Reconciliation Act of 2003,
offer powerful tax incentives for new investment in
equipment. These incentives continue with the Tax
Increase Prevention and Reconciliation Act of 2005 (TIPRA),
signed into law by President Bush during 2006.
TIPRA gives many small to midsize
businesses a break by extending the increased Sec. 179
deduction. Originally scheduled to drop back to $25,000 in
2006, the $100,000 expensing election is now available
through 2009. Because this amount is increased for
inflation, for 2007 the Sec. 179 deduction is $112,000.
AzEquipmentFunding.com Leasing provides the
perfect leasing structure to take advantage of all of
the benefits of the law and at the same time conserve cash
with an affordable monthly payment.
Here are the specifics: For
businesses, the most lucrative piece of the law is a huge
increase in the "Section 179" first-year depreciation
allowance for equipment to $112,000 as of January 1, 2007.
It was originally $25,000. Under this tax break,
businesses can immediately deduct 100 percent of the cost
of most new and used business personal property, including
computer software.
The Tax Law favors Capital Leases - the type of Lease
that we recommend - over a traditional
True Lease.
Our recommended lease offers all
of the tax benefits of ownership provided under the tax
bill as well as maximization of cash flow. With an
immediate deduction of 100 percent of the cost of most new
and used business property under "Section 179", it now
makes no sense to acquire equipment under a True Lease and
spread the payments over the life of the lease. With a
Capital Lease from us, you can immediately expense the
entire equipment cost as well as the "interest portion" of
the lease payments. Your tax benefits are maximized, and
you gain all the advantages of a lease with us -
conservation of cash, a low, affordable monthly payment,
and bank lines are kept open and available for operating
needs.
