Did you know that your company can finance equipment and software
take advantage of the 2016 Section 179 and Bonus Depreciation tax breaks?
What's new for 2016?
179 deduction limit is now $500,000
Good on new and used equipment, plus off-the-shelf software.
179 spending cap = $2,000,000
The maximum amount that can be spent on equipment and/or software
Bonus depreciation is 50% for 2016
Qualifying businesses can write off 50% of the cost to acquire eligible equipment.
Take advantage of the Section 179 tax breaks. They offer a great opportunity to acquire equipment and increase your cash reserves at the same time.
Plan for 2016
Do you plan to spend more, or less, than $2,000,000 on capital equipment this year?
Great! Maintain the tax advantages
If your 2016 budget requires more than $2,000,000 in capital equipment investment, you’ll need to manage the tax ownership of those assets in order to maintain your Section 179 write-off. By using a lease from Key Equipment Finance (KEF) to finance assets over $2,000,000, KEF becomes the tax owner of the equipment, which allows you to maintain your Section 179 deduction on assets below that threshold.
Businesses can immediately deduct up to $500,000 of capital equipment expense on their 2016 tax return. Our loans and non-tax leases can keep you in the driver’s seat by letting you retain tax ownership of your equipment, which enables you to use the Section 179 write-off to your advantage.
If your company is an Alternative Minimum Taxpayer, or has certain other limited-life tax credits, you may not be able to take advantage of bonus depreciation directly. However, a tax lease enables you to trade those tax benefits for special pricing from Key Equipment Finance.