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Lease Options > Benefits > Tax Advantages

For illustrative purposes, we have provided an example of the tax savings
through IRS section 179. See your tax advisor to determining your actual tax benefit.



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Example #1:

NO LEASED
EQUIPMENT


Year- end taxable income:
$125,000

Equipment leased:
0

Adjusted taxable income:
$125,000

Tax bracket:
39%

Taxes paid:
$48,750


Example #2:

$25,000
LEASED EQUIPMENT


Year- end taxable income:
$125,000

Equipment leased:
$25,000

Adjusted taxable income:
$100,000

Tax bracket:
39%

Taxes paid:
$39,000



Example #3:

$102,000

LEASED EQUIPMENT

Year- end taxable income:
$125,000

Equipment leased:
$102,000

Adjusted taxable income:
$23,000

Tax bracket:
39%

Taxes paid:
$8,970


Actual tax savings will depend on your particular circumstances. Generally, IRS section 179 tax savings only apply to leases classified as capital leases for accounting purposes. You should consult a tax advisor for advice. To take advantage of IRS section 179 in 2007, you must take possession of the equipment prior to fiscal year-end. All leases are subject to credit approval.