- BONUS DEPRECIATION RATE IS NOW 100%
- IS LEASING REALLY THE RIGHTCHOICE for a small business?
- ASSET BASED LEASING: A few teaching points
- LEASING vs. BANK LOAN: A simple comparison
- DEPRECIATION ACCELERATION: Strategy to lower tax liability
- Avoid double taxation with the ALTERNATIVE MINIMUM TAX (AMT)
- Tax Relief with Section 179
Leasing Advantages
RightChoice Equipment Leasing was structured to handle small to mid-sized leases,
which make up the major portion of a $270 billion industry. An estimated 8 out of 10
U.S. businesses lease equipment. Our market niche is the small to mid-sized business,
looking for leases valued at $100,000 and less.
Here are some reasons for the increased popularity of equipment leasing:
Equipment leasing improves a company's cash flow. With leasing, there is no need for
significant cash outlays, as opposed to an equipment purchase, which generally requires a
large down payment.
Equipment Leasing does not have any impact of an individual's credit lines.
Profits and growth are improved through equipment leasing.
Businesses choose not to invest in equipment that becomes obsolete and improves a
company's balance sheet.
Equipment leasing reduces long-term debt.
Equipment lease payments are operating expenses and are 100% tax deductible in most
businesses.
Creative financing is available through equipment leasing, because lower payments can
be arranged during the early months of the lease.
Potential Tax Advantages:
The laws affect nearly every aspect of your business-including the way you handle
equipment acquisitions. Under the tax law, accelerated depreciation can trigger the new
Alternative Minimum Tax (AMT)-leasing may help you reduce the impact of this 20%
tax.
Under old laws, the Investment Tax Credit and the Accelerated Cost Recovery System
(ACRS) gave incentive to big ticket purchasers. Now, leasing-the preferred method of
acquiring equipment-has even more advantages!