*** Important Update for Autumn / Winter 2010 ***

Effective as of 09/28/2010, H.R. 5297 (the Small Business Jobs and Credit Act of 2010) had a substantial (and welcome) impact on Section 179. The biggest impact is that it increased Section 179's limits (almost doubling them).

This should mean a substantial boost to your bottom line this year. But to get the deduction for tax year 2010, you have to act now, as once the clock strikes midnight on 12/31/2010, Section 179 can't affect your 2010 profits anymore.

Leasing and Section 179
Did you know that your company can lease equipment and still take full advantage of the Section 179 deduction? In fact, leasing equipment and/or software with the Section 179 deduction in mind is a preferred financial strategy for many businesses, as it can significantly help with not only cash flow, but with profits as well. Of course, we always recommend consulting with your accountant regarding your particular tax situation.

Non-Tax | Capital Lease
The main benefit of a non-tax capital lease is that you can still take full advantage of the Section 179 Deduction, yet make smaller payments. With a non-tax capital lease you can acquire and write off $500,000 worth of equipment this year, without actually spending $500,000 this year. A small business that is managing cash flow can leverage a non-tax capital lease and still take the Section 179 Deduction.

Examples of non-tax capital leases include a '$1 Buyout Lease' and a '10% Purchase Upon Termination (PUT) Lease'. In many cases, the amount you save in taxes will be MORE than the total of your first year's payments.

Equipment Financing
You may also obtain an equipment loan using an Equipment Finance Agreement (EFA) and still take the Section 179 Deduction.

Advantages of Leasing and Financing
The obvious advantage to leasing or financing equipment and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction (you are reading this correctly - in many cases, the deduction will actually be profit.)

Speak to an Expert
A Qualified Equipment Finance Lender can help you structure your equipment lease (or equipment financing agreement) to take full advantage of the benefits of Section 179. If you have any questions, or simply wish to explore your options, please call, or email.

RightChoice Equipment Leasing specializes in equipment financing and leasing for small and medium sized businesses. With one simple application, great rates, and a fast "within hours" approval time. RightChoice will search for your best options to deliver the equipment financing you want, while also being very friendly to your bottom line. Let us assist you, today.