Financing your 
Office Furniture Purchase

The New 2009 Tax Breaks!

Congress extends the amount that small businesses may write-off for capital expenditures: $250,000!

 Here’s how you can lower your cost of business equipment:

Business owners who acquire equipment including office furniture, business telephone systems, security systems, machinery, computer hardware and software, and other tangible goods, usually prefer a substantial deduction in a single tax year, rather than a little at a time over a number of years. This accelerated deduction is known by its section in the tax code: a Section 179 deduction. The 2009 law extends the amount of qualified property that a business can expense under Section 179 to $250,000.This incentive is for equipment placed in service by December 31, 2009 and is designed for small companies, so the deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income). 

Bonus Depreciation 2009The law also maintains the bonus depreciation of 50% for qualifying assets. This bonus is in addition to regular first-year depreciation.

Benefits of a Non-Tax/Capital LeaseThe benefit of a Non-Tax/Capital Lease is that it can take advantage of Section 179: expense up to $250,000 if the equipment is put in use in 2009. In addition, you may depreciate any excess on the depreciation schedule for that asset. Examples of Non-Tax/Capital Leases include a $1.00 Buyout, an Equipment Finance Agreement (EFA), and a 10% Purchase Upon Termination (PUT) Lease. Example: Assume your finances $300,000 worth of business equipment, put it in use in 2009, and take advantage of Section 179. Your tax savings could be significant.

Equipment Cost Example:  $300,000
1st Year Write Off:  $250,000
($250,000 is the maximum Section 179 write-off in 2009)

50% Bonus Depreciation   $25,000
(On remaining value: $300,000 - $250,000 = $50,000; $50,000 x 50% = $25,000)

Normal 1st Year Depreciation:  $5,000
(Depreciation calculated at 5 years = 20%; $25,000 x 20% = $5,000)

Total 1st Year Deduction:  $280,000
($250,000 + $25,000 + $5,000 = $280,000)

Tax Savings Assuming Rate of 35%: $98,000($280,000 x .35 = $98,000)

1st Year Net Cost after Tax Savings: $202,000 ($300,000 - $98,000 = $202,000)

The sample calculation shows how taking advantage of Section 179 can significantly lower the true cost of equipment ownership from $300,000 to $202,000.

For the specific impact to a company, please contact your tax advisor or IRS Helpline at 800-829-4933.

Example:Monthly investment = $ 1,000
Finance Term = 36 months
Tax bracket = 35%
Monthly tax savings = $1,000 x .35 = $350.00
Total tax savings over the term of the contract = $12,600.00

Interested in learning more?
We’ll provide you with a free consultation and extend finance solutions so youcan acquire the business equipment they need - even in today's economy! 

Contact us today! 1-888-99Desk or 631-218-4001

Who qualifies for a municipal finance agreement?

The government of states, counties, cities, towns, villages and borough, as well as fire departments, police departments, school districts, state universities, county & state hospitals, and American Indian Nations.

Any essential equipment needed and used by a political entity, including computers, pumps, construction equipment, office equipment and furniture, telephone systems, fire and safety equipment, medical equipment, printing equipment, airport equipment and vehicles.

NON APPROPRIATION AGREEMENT Early Buyout Options Variable Payments Reduced Monthly Outlays Funding Immediate Needs

We use Horizon Keystone Financial always identifies with the your needs and requirements. There dedicated service team is available to work with you on a moments notice. We will walk them through the entire leasinprocess, from information request to approval and then funding. 
You  will get the equipment they need now, without waiting for next year's budget cycle and without the costs and delays of a voter referendum. - Because municipal interest payments are exempt from federal income taxes, Horizon Keystone Financial passes its tax savings on to your customers in the form of lower rates that will keep their monthly payments affordable. - Finance agreements could be structured with monthly, semi-annual, or annual payment structures to accommodate the government body financing. - Government body would be given an option to prepay the finance agreement at a discounted buyout price negotiated at the inception of the lease.

A municipal lease characterized by a non-appropriation clause specifies that the lease can be terminated in the event funds are not made available in subsequent fiscal years.