Section 179 Tax Savings for Banleaco Customers
Equipment financing can bring small businesses big tax savings
The recent changes to the IRS tax code have allowed small business owners to reduce their tax liability when purchasing new equipment.
The Internal Revenue Service’s Section 179 Deduction lets businesses deduct up to $1 million of qualifying equipment purchases in the year the equipment is put into use. The deduction can result in significant tax savings even for small businesses. Equipment that is 100% financed is eligible for the deduction.
The tax savings can have a big impact on a bottom line.
How Section 179 benefits you*
Let’s say you are considering new equipment for your business at a cost of $25,000. You don’t want to tie up all of your cash or your lines of credit so you choose financing. You secure financing through Banleaco, take delivery of the equipment and put it into use by July 1st.
Assuming you are in the 21% tax bracket your purchase could save $5,250 in federal taxes. ($25,000 for the equipment x 21% federal tax)
Based on a 60 month term, your payments through the end of the year would be $2,892.
The tax savings cover the payments and leave nearly $2,400 in your pocket!
If you are looking to make your money work for you contact Banleaco. To learn more about Section 179 benefits, please contact your tax adviser for current laws or visit www.irs.org.
*It is recommended to consult your tax adviser regarding your specific tax situation and to obtain the most current up-to-date details.