Tax Savings Lease Calculator
- Section 179 Deduction

Want to lower the true cost of ownership on your business equipment? Use our Tax Savings Lease Calculator to discover your available tax savings.

Cost of Equipment:
(only field required)
Section 179 Deduction: $
50% Bonus Depreciation: $
Regular First Year Depreciation Deduction: $
Total First Year Deduction: $
Cash Savings on your Equipment Purchase:
(Assuming a 35% Tax Bracket)
Lowered Cost of Equipment after Tax Savings: $
The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.

Business Equipment

Business owners who acquire equipment for their business, such as machinery, computers and other tangible goods, usually prefer to deduct the cost in a single tax year rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction.

Under Section 179, businesses that spend less than $800,000 a year on qualified equipment, can write off up to $250,000 in 2010. The rules are designed for small companies, so the $250,000 deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income).

Benefits of a Non-Tax/Capital Lease

The 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 2010. 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 Lease, an Equipment Finance Agreement (EFA), and a 10% Purchase Upon Termination (PUT) Lease.

Further Detail

Each company should contact their tax advisor to learn about the specific impact to your business.

Contact Ryan Capital Leasing

Interested in learning more? Please feel free to contact your Ryan Capital Leasing representative for lease options, along with a tax savings estimate, on any possible transaction. Please call us at 1-800-541-6370 during regular business hours or send an e-mail.