| Possible tax scenario. Consult an
accountant for actual tax benefit |
2006 Tax Benefits |
| |
Year 1-Tax Benefits |
| Equipment Cost |
$50,000.00 |
| IRS Sec 179 |
$50,000.00 |
| Total 1st year write off |
$50,000.00 |
| Tax ($) Benefits EST. Tax Bracket 35% |
$17,500.00 |
| Equipment cost after year 1 Tax Benefits |
$32,500.00 |
The following is a possible tax scenario.
Consult an accountant
to maximize your actual
tax benefit |
2006 Tax Benefits
Year 1-Tax Benefits |
| Equipment Cost |
$200,000.00 |
| IRS Sec. 179 |
$108,000.00* |
| Adjusted Basis |
$92,000.00 |
| 1st Year Percentage of 5 Year Depreciation |
20% |
| Depreciation |
$18,400.00 |
| Total 1st Year Write Off |
$126,400.00 |
| Tax ($) Benefits Est. Income Tax Bracket:
35% |
$44,240.00 |
| Equipment Cost-After Year 1 Tax Benefits |
$155,760.00 |
EXTENDED! IRS SECTION 179?Expensing Allowance - The
American Job Creation Act of 2004 extend the use of the
$100,000($108,000 for 2006*) ceiling for two more years,
through 2007, for equipment purchases and qualified
leasehold improvements. Qualifying property now also
includes off-the-shelf computer software. *IRS Section
179 is written so it will increase with the cost of the
living (inflation).
Banks |
HPSC |
| Banks have variable
(floating) rates |
HPSC has fixed rates,
simple interest |
| Banks will not lease |
HPSC will lease and
finance your project |
| Banks usually ask for
collateral, such as a house or property |
HPSC uses equipment
for collateral and does note require personal assets |
| Banks often ask for a
20% down payment |
HPSC provides 100%
financing |
| Banks charge points to
cover the cost of the loan documents, attorney fees,
etc. |
$99.00 documentation
fee; no points or additional fees to cover costs |
| Bank terms will
usually not exceed five years |
HPSC provides terms
from one to seven years |
| Bank loans can tie up
your credit line for future purposes, such as
personal loans |
HPSC will not tie up
your credit lines with the bank |
| Funding the loan can
mean miles of red tape and paperwork |
Funding with HPSC is
as simple as making a phone call |
