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terms from 24 months to 60 months

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*Please be aware that the information does not represent an approval to your financing request. A final decision for the requested quote – amount, rate and term – will be determined by LCA’s review of your business, including credit worthiness, as well as other requirements set forth by the LCA Credit Department.

179 TAX deduction

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, up to $500,000. Do not use commas when entering "Cost of Equipment"

COST OF EQUIPMENT:

Section 179 Deduction:

( Year One Write-off )

50% Year-One Bonus Depreciation:

( Assuming 5-year Life for Equipment )

Regular First Year Depreciation Deduction:

( Based on Half-year MACRS 20% FYD )

Total First Year Deduction:

Federal Cash Saving on Equipment Purchase:

( Assuming a 35% tax bracket )

Lowered Cost of Equipment after Tax Saving:

Note: The deduction limit is $500,000 and the limit on purchased equipment of $2,000,000. Once this limit is exceeded, the 179 deduction is reduced dollar-for-dollar, i.e. at $2,500,000 of equipment purchased, the 179 deduction is no longer available.

This calculator is not meant to be tax advice. The indicated tax treatment applies only to a capital lease scenario. Please consult with a tax advisor to determine the tax ramifications of acquiring equipment or software for your business. This is only an estimate.