Business / Corporate Financing

EQUIPMENT FINANCING

Tax breaks extended

Why nowmore than everis the best time to acquire new equipment.

Learn how your business can benefit even more when you combine new tax benefits with financing equipment rather than paying cash.

Did you know that your company can finance equipment and software

plus

take advantage of the 2016 Section 179 and Bonus Depreciation tax breaks?

What's new for 2016?

$500,000

179 deduction limit is now $500,000

Good on new and used equipment, plus off-the-shelf software.

$2,000,000

179 spending cap = $2,000,000

The maximum amount that can be spent on equipment and/or software

50%

Bonus depreciation is 50% for 2016

Qualifying businesses can write off 50% of the cost to acquire eligible equipment.

Section 179

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

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.
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Super. Accelerate those write-offs

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.
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Bonus Depreciation—extended through 2019

Take advantage of accelerated depreciation on your new equipment.


in years

2015, 2016, 2017

in

2018

in

2019

Assess your tax situation

Great!

Using a Key Equipment Finance loan or non-tax lease allows your company to claim the 50% bonus depreciation directly.
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Okay.

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.
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Important note:

Although both new and used equipment qualifies for Section 179, Bonus Depreciation is for NEW equipment only.

Why finance?

  • Benefits of financing
  • Why partner with Key Equipment Finance?

Benefits of financing

Enjoy enhanced flexibility with the following:
  • Flexible end-of-term options — Return the equipment, renew the lease, or purchase the equipment at the end of your lease.
  • 100% financing — No down payment means you have more money to invest in other revenue-generating activities.
  • Cash and credit line preservation — Liberate existing credit lines for short-term needs and avoid large cash outlays for assets you will use over a multi-year period.
  • Equipment flexibility — Leverage upgrades and add-on options through your lease, plus include optional installation, maintenance and other charges in your financing contract.

Financing allows your company the freedom to acquire the equipment it needs, when it’s needed.

Why partner with Key Equipment Finance?

  • Work with industry and asset experts — We've been helping our clients with equipment and software financing for more than 43 years
  • Customized solutions — Tailor your lease to your cash-flow requirements
  • Nimble credit model/efficient processing — Enjoy a quick, easy financing process
  • Accountable service — We're focused on your objectives and responsive to your needs

 

At Key, we're proud to offer our clients direct and convenient access to a full suite of financing solutions.

Summary

Key Takeaways

Taking advantage of tax breaks and utilizing financing might be the most strategic move you make this year.

The overall result...

You're able to acquire the equipment you need to stay competitive and grow your business, now and in the future.

Let Key Equipment Finance industry and asset experts work with you to tailor a solution to fit your needs.

Reminder: Equipment and software must be in place by midnight, December 31, 2016.

In order to take advantage of the Section 179 write off and 50% Bonus Depreciation for the current 2016 year.

Learn more about equipment financing

Visit 
keyequipmentfinance.com/business
 or contact your Key Equipment Finance Sales Representative.