Maximize the Benefits of New Tax Changes with a John Deere Lease
TAX CHANGES AHEAD
Cross
Implement can structure your equipment acquisition to help you capitalize on these tax benefits!
Valuable tax provisions are set to expire at the end of the year.
Section 179 allows $139,000 in capital equipment to be expensed in 2012, with a phaseout threshold of $560,000.
The Section 179 amount drops to $25,000 (threshold of $200,000) in 2013.
Bonus Depreciation is at 50% in 2012 for new, qualified equipment placed in service during the year. There are generally no bonus depreciation provisions in 2013 or beyond.
A conditional sale lease can finance your equipment and allow you to take advantage of these tax benefits.
Once you’ve maximized your deductions, utilize true tax leases to finance your equipment.
Lease payments are tax deductible as business expenses on qualifying true leases.
Don’t wait – plan now to ensure you get the equipment you need and tax deductions you want!
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Example: $500,000 in qualified equipment acquisitions. |
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|
2012 |
2013 |
|
|
Section 179 Deduction |
$139,000 |
$0 (above threshold) |
|
50% Bonus Depreciation (on remaining amount over Section 179 deduction) |
$180,500 |
$0 |
|
Normal 1st Year Depreciation (7-year MACRS life) |
$25,793 |
$71,450 |
|
Total 1st Year Deduction |
$345,293 |
$71,450 |
Cross Implement in Minier specializes in tailoring a deal structure that minimizes your tax exposure, while simultaneously managing funding costs along with providing the needed cash flow.
Check out our current inventory of late model John Deere trades and let us tailor a plan that meets your needs.
