Every business has unique and evolving needs, especially when to comes to equipment. We can work with you to develop solutions that allow you to update old technology, replace worn assets or add new equipment to expand your capabilities.
Potential benefits of tax leasing equipment in the 4th Quarter:
- The Omnibus Spending and Tax Extenders package passed by Congress at the end of 2015 retroactively and prospectively extended bonus depreciation at the recent 50% level for qualified new MACRS property placed in service in 2017 that meets all existing eligibility rules.
- If bonus depreciation will create more depreciation than you can utilize on your tax return, consider acquiring new equipment through a tax-oriented lease.
- A tax-oriented lease may lower your cost of capital versus a standard term loan and will allow you to expense lease payments fully on your federal tax return.
- Bonus depreciation is scheduled to decrease to 40% in 2018, so you should act quickly to receive the maximum benefit.
Favorable financing benefits available through the 4th quarter
Below is a sample illustration of the potential implicit rate differential from closing a lease by December 31, 2017 versus after January 1, 2018.
For informational purposes only. Bank of America N.A. and Banc of America Leasing do not provide accounting or tax advice to their customers. Customers are urged to consult with their own accounting and tax advisors