We
apologize! Some of you may have recieved a newsletter from us earlier
today and now you must be thinking, "Another one?"
Please disregard that one as last October's newsletter was mistakenly
sent. Here is the current October newsletter for your reading
enjoyment...
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"Happiness
is not in the mere possession of money; it lies in the joy of
achievement, in the thrill of creative effort." - Franklin D.
Roosevelt, President of the United States of America
October is the perfect time of year to remind
our customers about Section 179 Deduction, also known as the 179
Expense Election. Small businesses or those who spend less than
$500,000 on capital equipment this past year may expense a capital
equipment acquistion up to $125,000. If more than $500,000 is
spent on capital equipment, the amount of the deduction declines as the
amount spent increases.
To qualify, the property must be business equipment
used in the business at least 50% of the time. Permanent
structures do not qualify, although some single use farm
buildings do. The equipment may be new or used and must be acquired
during the 2007 tax year, from an entity not controlled by the
purchaser.
If you lease or finance the equipment, the deduction
may be greater than the investment required to initiate
financing. For example, suppose you leased a piece of
equipment in December of this year that costs $150,000.
You have the ability to write off $125,000 but you have only invested
the first and last payment to start the lease. The write off
exceeds the investment you made to get that piece of equipment,
resulting in a lower tax bill.
Contact us today if you plan to lease or finance any
equipment before the end of the year. And don't forget to take
advantage of Section 179 if applicable.
As always, talk to a
tax professional first because every company's situation is
different and there may be tax savings that are more suitable for your
particular company.
Source: Archie Julian- Dumac
Leasing
First Star Capital is a
national leader in all types of equipment financing and leasing.
We operate in all 50 states and are currently offering some of the most
competitive programs in the country. Our transactions are
funded both internally with private label lines of credit as well as
externally with some of the most competitive & flexible funding
partners in the nation. These diverse funding resources allow First
Star the flexibility to undertake a variety of transactions. Nothing is
too big or too complex.
For more
information, contact Brad Harmon at First Star Capital (800-604-4817).
First Star
Capital...Tomorrow's Growth Today
The
information and content provided is general in nature and is for
informational purposes only. This information is provided as a
convenience to you , and First Star Capital makes no warranties and
bears no liability for your use of this information.
