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Above and Beyond is Our Norm
Equipment Buyers Equipment Vendors Section 179 Information
Our government calls it US CODE; TITLE 26; Subtitle A; CHAPTER 1; Subchapter B; PART VI; §179.  We call it Section 179. 
We can’t give you tax advice, but as a friend, we want to make sure you’re not leaving money on the table.  
Section 179
This year's IRS Section 179 deduction allows businesses to deduct up to $134,000 in qualified new equipment purchases. The threshold for reducing the deduction is $530,000.

Sounds great!  What does it mean? It means you can buy or lease new equipment and write the entire purchase off this year. No delayed gratification by depreciating your equipment over 5 or more years!

Benefits of Financing
 You already know the myriad benefits of financing (cash flowing, budget making, money saving, business growing, etc).  If you finance your 2010 purchase on a capital lease through Caladesi†, you can write off the entire equipment cost this year, but only make a few monthly payments!

Example Calculation:
 Let's say you finance $350,000 worth of business equipment, and put it in use this tax year.  After taking your deductions, you can reduce the cost of owning equipment from $350,000 to $287,980, saving you $62,020 in tax liabilities.
Enter the Equipment Cost:
Section 179 Write Off:  $134,000
(The maximum Section 179 write-off is $134,000)
Standard First Year Depreciation: $43,200
MACRS calc at 5 years = 20% ($216,000 x 20% = $43,200)
Total 1st Year Deduction: $177,200
Sect 179 + MACRS ($134,000 + $43,200)
Tax Savings (Assumes 35% rate): $62,020
($177,200 x .35 = $62,020)
Effective Cost after Tax Savings: $287,980
Original Amount - Savings ($350,000 - $62,020) *


 
* For the specific impact to your company, please contact your tax advisor.
Please Note:
While we think we’re pretty smart people, we can’t give tax advice.  The information contained in this calculator is provided as a public service.  It should not be construed as tax advice or a promise of reduced tax liability.  For more information contact your tax professional or visit the Internal Revenue Service Web site at www.irs.gov or contact the IRS helpline at: 800-829-4933.

†Okay, you could pay cash or finance through someone else (gasp) and still take the deduction.
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800-255-5341 - Tampa, Florida