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Capital Grove's equipment lease financing solutions can enable you to take full advantage of these tremendous tax advantages. You can receive 100% financing, obtain your new equipment sooner, and still reap the full tax savings this year. This is a powerful combination!

Section 179 Expensing:

"Get paid in advance" to add equipment. Small businesses can write off up to $250,000 of equipment the year they put it in service. It is not necessary to depreciate it over several years. By leasing that equipment, you can have the government pay it's share up front, essentially getting free use for over a year.

Example: You buy a $100,000 piece of equipment and finance it on a 60 month lease/purchase contract with a monthly payment of about $2200. If you're in a 34% bracket, your first year write-off comes to $34,000, enough to make the first fifteen lease payments ($34,000 / $2,200 = 15.45).

  • Phased out dollar-for-dollar when purchases exceed $800k
  • Property may be new or used
  • Expensing levels will drop at after 2009

Bonus Depreciation:

  • 50% additional first-year depreciation on MACRS property with recovery period of 20 years or less
  • Remaining basis (the other 50%) depreciated under normal MACRS rules
  • Property must be new, ordered, purchased and placed in service during Calendar year 2009
  • Will expire on December 31, 2009
  • Expiration is extended one year for property with recovery period of 10 years or longer, for transportation equipment (used to transport people or property), and for certain aircraft

Note: Consult your tax advisor to evaluate your specific situation.