Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction. Under Section 179, businesses that spend less than $800,000 a year on qualified equipment may write-off up to $250,000 in 2010. (Companies cannot write off more than their taxable income).
Benefits of a Capital Lease
The benefit of a Capital Lease is that it can take advantage of Section 179: You can expense up to $250,000 if the equipment is put in use in 2010. Example: Assume you finance business equipment, put it in use in 2010, and take advantage of Section 179. Your tax savings could be significant:
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