Business Tax Write Offs: Save $ Now

Business Tax Write offs

One of the best Business tax write offs that a business can have when acquiring assets or obtaining funding is to finance through a lease.

In most cases, when leasing, the full payment can be written off,  with an example below.

Apply Securely Now

DocuSign Secure 15 Second Info Form Here.

Call 919-771-4177 for more info.

Biggest Deductions

These are beyond the normal payroll, lease and other deductions. Don’t forget
to deduct these as appropriate per IRS rules.

Commercial Real Estate Mortgages

Mileage

Accounting Fees

Legal Costs

Some personal legal costs may spill over and be deductible by the business.

Technology purchases

Does your business use the same technology you may have bought for yourself? Maybe
your business has been using that same technology, including software, monthly memberships,
etc.
A customer has secured a $52,000 lease, either for the acquisition of an asset, or through a real estate leaseback.

Tips for business tax write offs

The following cost of financing is with regard to funding for $52,000, for review.

A lease may be written of 100% and  can return approximately $10,234 in Tax savings to you, as follows:

60 payments, $1,319.09 per month plus tax = $79,145

Tax Write Off:   $79,145 to be written off $100%
$79,145 X .28 (National Average)
= $22,160 in Tax Savings

60 Monthly payments of $1,319.09 per months for $79,145
– $22,160 (You recover Tax Savings) – $52,000 (You recover in funding) =  $4,985 (Total cost not recovered)

Per Year
$4,985 % 5 Years = $997 Per year total cost not recovered

APR – Annual Percentage Rate
$997 / $52,000 = 1.9% Effective APR per year

Cost per month
$997 / 12 = $83/Mo

In business, dollars invested wisely can multiply themselves many times over, and the $83 per month becomes almost insignificant in light of the potential the investment can provide based on even a modest profit margin in the use of funds.

As a result, employing leasing, either via the equipment leaseback or real estate leaseback  method, or to obtain capital, is a cost effective approach for businesses to employ.

Click here for additional information