Equipment Lease Tax Calculator from Five Point Capital

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By choosing equipment leasing you can fully deduct equipment lease payments and realize tax benefits. By writing off payments and lowering taxes you increase cash flow and increase operational flexibility. Paying fewer taxes means more money to reinvest in your business. Five Point Capital offers our equipment lease calculator. We can help to find out how much you can save with equipment leasing by inputting the cost of equipment in the shaded box below and click on ‘calculate’.

Cost of Equipment:

Section 179 Deduction: (available on the first $250,000 of up to $800,000)	$
BONUS Depreciation: (at 50% depreciation of cost over $250,000 for the first year)	$
Total First Year Deduction:	$
Cash Savings on your Equipment Purchase: (assuming a 35% tax bracket)	$

Lowered Cost of Equipment after Tax Savings:

Business owners who acquire equipment for their business: machinery, computers and other tangible goods thru equipment leasing, usually prefer to deduct the cost in a single tax year. This deduction is known by its section in the tax codes, a Section 179 deduction

Section 179 Deduction

If your equipment is installed in 2008, you can benefit from a Non-Tax/Capital Lease and expense up to $250,000. You may depreciate any excess as determined by the depreciation schedule for that asset. The Economic Stimulus Act of 2008 also created a bonus depreciation of 50%. This bonus is in addition to regular first-year depreciation. To find out your tax savings, and the true cost of your equipment acquisition, use our Tax Savings Lease Calculator. Please note that you will not see any depreciation in this calculation until your equipment cost exceeds $250,000. Companies cannot write off more than their taxable income.

Regular First Year Depreciation Deduction

This calculator presents a possible tax scenario. 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 see your tax advisor to determine the tax ramifications of acquiring equipment or software in your particular situation.

A 20% first year depreciation deduction may be used for the first year the equipment is in service, assuming a MACRS recovery period of 5 years. Non-Tax leases qualify for this deduction in their year of inception. Any excess above the expensed amount can be depreciated depending on the equipment type. Not all states follow federal law. Contact your tax advisor for further detail or visit www.irs.gov for specific detail.

NOTE: This equipment lease tax calculator and the contents of this page are intended only to allow you to see the potential impact of the tax situations. It is based on 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 (e.g., a conditional sale lease). Please see your tax advisor to determine the tax ramifications of acquiring equipment in your specific situation. The deduction limitations set forth herein are subject to inflation adjustment increases under the Internal Revenue Code.

Our exclusive guarantee entitles you to the best equipment lease... period.

Members of:
National Equipment Finance Association
Equipment Leasing and Financing Association

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