EMS works in partnership with Stearns Bank for Financial Options.
Stearns Bank Contact Sales: P.800-247-1922 / F.320-845-4982
Leasing can actually save you money when accounting for your tax liability. That’s because your lease payments are made with pre-tax dollars and cash purchases are made with taxed income. In the long run, paying cash ends up costing more than if the equipment is leased. Here’s an example to explain:
Equipment Cost = $15,000 Divide .70 (30% tax bracket) into the cost of the equipment Total paid for equipment after tax = $21,429 Paying cash vs. leasing ends up costing you $6,429 more
Great news! Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy or lease a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves. Businesses can write-off up to $500,000 of qualified equipment and software during the 2010 – 2011 tax year.