After Tax Costs of a FMV Lease
|Term of Lease
|Tax Savings, 40% fed, state
|After tax cost per month
- Based on $100,000- equipment cost as an example. Payments based on good credit.
- Taxes not included.
- After tax based on 34% federal and 6% state tax brackets, your individual results
- This is meant as a guide, consult with your accountant to review your particular
situation. Avalon welcomes your call and those from your accountant.
After Tax Cost of a Capital Lease
IRS Section 179 Expensing allows businesses to expense the cost
of equipment acquired in the year it is placed into service. Think of it as one year
depreciation. The allowance is up to $250,000 of qualified equipment for the year
If leased under a one dollar or ten percent fixed option, the
equipment still is eligible for immediate tax savings under this beneficial tax treatment.
Sample Section 179 Tax Savings Calculation
|Cost of Equipment
|Section 179 Expensing
|Tax Savings, 34% bracket
|After Tax Cost
|36 Month Lease Payment
|Number of "free" payments
|60 Month Lease Payment
|Number of free payments
- Tax savings are realized when the U S. tax return is filed for the current year.
- Tax savings can not exceed income.
- Section 179 guidelines are available on the IRS web site, or consult with your
accountant. This excellent incentive is geared towards small and medium size businesses.
- Payments based on good credit. Call Avalon Leasing to discuss your particular
- "Free" payments based on tax savings. Take advantage of one of the top business
tax breaks of recent history.
In the event these tax savings benefit your organization, please proceed
to our one page credit application.