Commercial Finance Blog

Business Financing, Equipment FinancingNovember 28, 2007 3:58 pm

Equipment Finance Association Survey

The Equipment Leasing and Finance Association’s 1/ (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports equipment finance activity showed that overall new business volume for October was virtually flat (0.10%) when compared to October 2006. However, according to year-to-date cumulative totals, new business volume for January to October 2007 was 6.5 percent higher when compared with the same period in 2006.

Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index   

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Equipment FinancingNovember 19, 2007 4:32 pm

Section 179 Copier Example

Here is a recent posting of how Section 179 was leveraged in the copy machine business:

"Special thanks to a member of the Print4Pay Hotel, who reminded me of the Section 179 of the IRS Tax Code. I’ll use his quote here. "Time is limited as the asset must be placed in service by the end of the year. Your customer can capture this deduction under a dollar out lease thus getting a size able reduction in tax liability for 2007 without any money out of their pocket".

There are many small business owners who either forget or are unaware of the advantages of IRS Section 179. Our job is too remind them of the special advantage at this time of year. Personally, I will use this close to give my customers a sense of urgency to buy before the end of the year."

Arthur Post goes on to assert that business marketing efforts should be constantly on the move and that IRS Section 179 will allow any business to do just that.

Close End of The Year Copier Sales with Section 179

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Business Financing, Credit, Equipment FinancingNovember 15, 2007 6:51 pm

Section 179 – Letting the Government pay for your Stuff

I have gotten some questions regarding my last post on section 179, mostly what types of equipment applies?

Excerpt:


"Before you start scratching your head while scrolling down the page looking for sections 1 through 178 I am referring to the US IRS Code.

It’s day 2 of the 4th quarter rush and a lot of the new recruits have no idea why it gets so crazy in the office during this time. Most have to do with the general flow of business Equipment Seller are sending out promos to try and move inventory for a strong year end close; while one of the other major reasons is the tax benefits associated with financing during this time.

Technical… Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179), allows businesses to immediately deduct the cost of certain types of property on their income taxes, as an expense (rather than requiring the property to be capitalized and depreciated). This property is generally limited to tangible personal property such as equipment and vehicles. Buildings are not eligible for section 179 deductions. Depreciable property that is not eligible for a section 179 deduction is still deductible over a number of years through MACRS depreciation."

"Certain types of property": Well the truth is it can be anything from printing presses and machine tools to Hummers and Navigation units (Of course all for business use. ‘Essential use’ is a pretty vague definition.).

If you have further questions simply ask anyone wearing a bowtie.

Next time I will discuss the finer points of frying a turkey.

 

Related

 

Qualifying Equipment

 

Section 179 Calculator

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