Did you Know? Section 179

Did you know? 

Did you know Harbour Capital is one of the leading equipment finance companies in the nation?  Did you know that by purchasing or leasing  equipment before Jan 1st 2012 could potentially lower your taxable income?  It could save you and your business from having make a huge tax payment to the IRS to kick off 2012.

As my first official online blog, I’d like to give special thanks to our multi talented IT department for making this happen.  Without them, I’d be stuck with pen and paper and we all know that method of communication is slowly fading.  Today’s technology has allowed us to post, blog, and tweet information out to our customers in real time.  My blog today will list for you all the benefits that come along with Section 179 as well as a few simple steps to follow to get the ball rolling…  For those of you who have leased equipment in the last year, you may qualify for a celebrated tax break from Section 179.   If your business is showing a profit and you don’t want to give 40% or more of that profit to Uncle Sam, figure out what equipment, technology, machinery, etc. would help your business and apply for financing today.

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Here are a few things to consider for year end.

Call your bookkeeper The Section 179 Deduction benefit is too good to pass up. Why waste valuable dollars paying income tax when you have the opportunity to invest in your business? Tax professionals can help you strategize and develop a plan to best take advantage of the Section 179 deduction. And, they’ll know exactly how much equipment you can buy.

Apply for Financing.  Applying for financing through Harbour Capital is simple.  A one page credit application can qualify your business for up to $150,000.  No financials required.  You can apply online, over the phone, or by fax and email. 

Equipment leasing, also known as equipment financing is widely considered an effective way to purchase new or used equipment for your business. It is also the most realistic way to obtain financing in this economy. A capital lease is the appropriate lease structure to take advantage of the Section 179 deduction. A capital lease is a lease with a $1.00 purchase option at the end of the term, or a 10% PUT (purchase upon termination). Essentially, you lease the equipment for a specified amount of time (12 to 60 months) and purchase the equipment after all the lease payments have been made for $1.00 or 10% of the original purchase price. Since the end of term purchase option is established upfront, the equipment is considered yours and it is listed as such on your tax return.

Equipment leasing has several unique benefits to the borrower:

  • Easy Process – Qualify for up to $150,000 with a 1-page application
  • No additional collateral Required
  • Transaction does NOT appear on business owner’s personal credit
  • Most deals are completed within 5 to 10 business days
  • No large down payment
  • Flexible Payment Options & Terms
  • Software & Vehicle financing available

Final Thoughts on the Section 179 Deduction!

With 17 days left before the end of 2011, now is the time to check in with your accountant and start planning. Project your net taxable income and look up your tax bracket. If you are showing a substantial profit, figure out what equipment, technology, machinery, etc. would help your business. Leasing this equipment could potentially lower your tax bracket. And, it could save you from having make a huge payment to IRS to kick off 2012!!


Pat Sullivan – HCC Blogger