equipment financing solutions and tax incentives - … · businesses to deduct up to $500,000 of...
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Helping Your Business Grow with Simplified Financing
Get the equipment you need when you need it with our complete financing solution, including affordable monthly payments, flexible terms, competitive bank rates and responsive customer service.
You may qualify for a Section 179 tax deduction of up to $500,000plus a 50% bonus depreciation allowance1
Equipment FinancingSolutions and Tax Incentives
visit: sbef.comvisit: sunnen.com/finance
Craig TillisonOffice: 713.669.0037 | Cell: 713.628.7866 Fax: 314.800.1195 Email: ctillison@scottradebank.com
Office: 314.781.2110 x2384Address: 7910 Manchester Rd., St. Louis, MO 63143Email: jfinocchio@sunnen.com
We Finance American Ambition®
Financing Solutionsfrom
Jan Finocchio
Equipment Solutionsfrom
visit: sbef.comvisit: sunnen.com
SECTION 179 DEDUCTION• Section 179 of the Internal Revenue Code permits
businesses to deduct up to $500,000 of the cost of
qualifying property placed into service each year.
• All businesses that purchase, finance and/or lease
less than $2,000,000 in equipment should qualify for
the deduction.2
• Both new and used equipment acquisitions qualify.
ADVANTAGES OF FINANCING• Predictable, fixed monthly payments
• Conserves working capital and credit lines
• 100% financing (equipment is collateral)
• Simple, one-page application3
• Fast approval process, typically same day
• Streamlined processing
• Quicker equipment delivery
PROGRAMS AND TERMS• $1, 10% or Fair Market Value options
• 36- to 84-month lease terms
FIRST-YEAR DEPRECIATION ALLOWANCE• Tax relief in the form of depreciation expense
for equipment purchases is available under the
Modified Accelerated Cost Recovery System
(MACRS).3
BONUS DEPRECIATION ALLOWANCE• Through 2017, a first-year 50% bonus
depreciation allowance is also available.
Qualifying 7-year property includes, but is not limited to: office furniture, fixtures and equipment; rail cars; food and beverage production equipment; and manufacturing machinery.
TAX SAVINGS EXAMPLE FOR 7-YEAR PROPERTY
The Good News About TaxesTax relief for businesses is available in the form of depreciation
deductions on equipment purchases.
Most U.S. businesses use financing when acquiring equipment
( x )
Depreciation
( — )Section 179Deduction
B
$100,000
( = )Net Adjusted
Basis
C
$0
Bonus
D
50%
( = )Net Adjusted
Deduction
E
$0
( x )MACRS First-Year
Depreciation*
F
14.29%
( B + E + G = )Total
Deductions
H
$100,000
( = )First-Year
Deduction
G
$0
EquipmentPurchaseAmount
A
$100,000
( x 35% = )Tax
Savings
I
$35,000
( A — I = )Net Equipment
Cost
J
$65,000
( A — J = )
NET FIRST-YEAREQUIPMENT
SAVINGS
$35,000
1Scottrade® and Sunnen do not provide tax, financial or legal advice. The material provided above is for informational purposes only and should not be relied on as the basis for any decision or action. Please consult your independent tax, financial or legal advisor for questions concerning your tax, financial or legal circumstances. 2The Section 179 deduction begins to phase out once qualifying investment exceeds $200,000. 3First-year depreciation allowances are prescribed by the IRS and vary depending on the useful life and recovery period of the asset. 33.33% applies to equipment with a 3-year recovery period. © 2016 Scottrade, Inc. All rights reserved. Scottrade®, Scottrade Bank®, the Scottrade Bank® logo and marks are the property of Scottrade, Inc. and its affiliates. Scottrade Bank Equipment Finance is a division of Scottrade Bank. Scottrade, Inc. and Scottrade Bank are separate but affiliated companies and are wholly owned subsidiaries of Scottrade Financial Services, Inc. Brokerage products and services offered by Scottrade, Inc. - Member FINRA and SIPC. Deposit products and financing services offered by Scottrade Bank, Member FDIC. Financing is available only upon approved credit. X-FIN-1000
Equipment FinancingSolutions and Tax Incentives
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