We had the chance to see old friends as well as make many new ones.  As a sign of how strong the industry is these days, the team came back with several financing requests in hand.

Thanks to Sergio, Albert, Will, Dirk and Denise (Denise missed her picture!) for their dedication and commitment to our customers!

TEQlease Capital is a leader in the equipment financing industry.  We are dedicated to providing comprehensive financing options for equipment buyers and sellers.

In the Concrete Industry?  Interested in working with a company that really understands and is committed to your needs?  Give TEQlease a call at 818-222-1006.  We measure our success based on helping you succeed.

The post TEQlease Team Attends World of Concrete 2017 appeared first on TEQlease Capital.

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy or lease a piece of qualifying equipment, you can deduct the full price along with the normal years’ depreciation, from your gross income.  This tax incentive was created by the U.S. government in an effort to encourage businesses to buy equipment and invest in themselves.

Check out the full details of Section 179 here.

So what does this mean for businesses?  It means that with the tax incentives of Section 179 coupled with historically low interest rates, now makes it the opportune time to finance or lease equipment.  Business owners can deduct the full purchase price of the equipment from their gross income while making affordable monthly payments, subject to certain limitations.   With the Fed possibly set to increase interest rates this December as well, it is important to take advantage of this situation while it lasts.

Is your business planning on taking advantage of the Section 179 deduction this year?   Comment below!

The post The Section 179 Tax Deduction Deadline Is Closing In appeared first on TEQlease Capital.

As part of the U.S. American Taxpayer Relief Act approved by Congress on January 2, 2013, the New York Times reported that businesses can continue to “fully expense many items in just one year, instead of over five years or more. The amount of investment eligible for immediate expensing grew to $500,000 in 2010 and 2011, but was to fall to $139,000 in 2012 and $25,000 in 2013. The new law extends the $500,000 limit through 2013, and pushes the $24,000 cap to 2014. Section 179 is available only to companies with total capital expenditures for the year under a certain threshold – $2 million through 2013 and $200,000 starting in 2014.”

Section 179 of the IRS Code was enacted to help small businesses take a depreciation deduction for capital expenditures in one year, rather than depreciating them over a longer period of time. By taking the full deduction for the cost of the asset immediately, rather than being required to spread out the deduction over the asset’s useful life, businesses can realize a substantial tax savings.

What Kind of Equipment Does Section 179 Apply To?

Small businesses may deduct the cost of certain new and used equipment including tangible personal property. According to the IRS  to qualify for the section 179 deduction, your property must be one of the following types of depreciable property:

1. Tangible personal property.
2. Other tangible property (except buildings and their structural components) used as:

• An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services,

• A research facility used in connection with any of the activities in (a) above, or

• A facility used in connection with any of the activities in (a) for the bulk storage of fungible commodities

3. Single purpose agricultural (livestock) or horticultural structures. See chapter 7 of Publication 225 for definitions and information regarding the use requirements that apply to these structures.

4.Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum.

5. Off-the-shelf computer software.

Furthermore, the IRS publication “ Bonus Depreciation and Increased Section 179 Deduction under the American Recovery and Reinvestment Act” also states:

 To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify.

The post Fiscal Cliff Deal Enhances Section 179 Aiding Small Businesses appeared first on TEQlease Capital.

1. Your taxes are going up. Although the approved deal raises tax rates only on individuals with income over $400,000 and families with income over $450,000 (their top tax rates will increase to 39.6%, up from 35% in 2012), the deal did not save the Payroll Tax Holiday. Therefore, the payroll tax immediately rises back to its 2010 level resulting in a rate that increases from 4.2% in 2012 to a new rate of 6.2%. The Tax Policy Center reports that the “average federal effective tax rate will be 21.7 percent and the average increase is $1,257.”
2. Millions of taxpayers will be spared from the Alternative Minimum Tax. Time Magazine reports, “According to one GOP estimate, 28 million families would have had to pay an average of $3,400 in extra taxes this year without the AMT fix. About four million taxpayers owed the AMT in 2011, up from about 1.3 million in 2001, according to the Tax Policy Center.”
3. Phase-out of personal and dependent exemption deductions for married taxpayers with an AGI of $300,000 or more and single taxpayers with an AGI of $250,000.
4. Phase-out of itemized deductions if your AGI exceeds $250,000 for single taxpayers and $300,000 for married joint-filing taxpayers.
5. The American Opportunity Tax Credit, the Child Tax Credit and the Earned Income Tax Credit all survived and will be on the books for the next five years.
6. Section 179 has been increased retroactively for 2012 and 2013. With the new deal in place, Section 179 has been increased retroactively for 2012 from $139,000 back to $500,000. The new law extends the $500,000 limit through 2013, and pushes the $25,000 cap to 2014. Section 179 is available only to companies with total capital expenditures for the year under a certain threshold — $2 million through 2013 and $200,000 starting in 2014.
7. 50 percent bonus depreciation for capital expenditures has been extended through 2013.
8. The Research and Development Tax Credit has been renewed retroactively for 2012 and “prospectively for 2013.”

The post 8 Things to Know about the Fiscal Cliff Deal and Your Pocketbook appeared first on TEQlease Capital.

Uncertainty regarding what will be the upcoming changes in Section 179 depreciation deductions, and in bonus depreciation changes, is actually the norm.  In both 2008 and 2010, businesses waited to find out what changes were to be made to these provisions, and much was also written then about the uncertainty surrounding the tax changes.  However, every time, the business depreciation deductions were maintained or improved.  So the impending changes now referred to as a “tax cliff”, at least with respect to business depreciation deductions, is rather ho-hum.

Yes there is uncertainty and planning is difficult, but businesses shouldn’t be stuck in a holding pattern.  There is certainty as to what can be depreciated and deducted in 2012, so businesses can act accordingly.  The overwhelming fear is that the tax environment for small businesses will worsen.  And if the past is again a good indicator, changes in tax policy toward business investment in later years won’t be known for quite some time.  This makes business investment in plant and equipment in 2012 all the more attractive.

The rules for 2012 are quite favorable.  Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179), allows a taxpayer to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated. This property is generally limited to tangible, depreciable, personal property which is acquired by purchase or lease for use in the active conduct of a trade or business.  The 179 election may be made only for the year the equipment is placed in use and is waived if not taken for that year.

Both the ‘Tax Relief Act of 2010’ as well as the ‘Jobs Act of 2010’ that passed in late 2010 affected Section 179 in a positive way for this 2012 tax year.  Here are the highlights for the 2012 tax year:

•             The Section 179 deduction limit after adjustment for inflation increased to $139,000.

•             The Section 179 threshold for total of equipment and software that can be purchased increased to $560,000.

•             The law allows 50% “Bonus Depreciation” on qualified assets placed in service during 2012.

•             The Section 179 deduction is available for most new and used capital equipment, and also includes certain software.

•             Bonus Depreciation can be taken on new equipment only (no used equipment, no software).

•             When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2012.

No action in determining business depreciation deductions is expected before the elections.  Regardless the result of the election, we view it as extremely unlikely that business depreciation deductions for 2013 and beyond won’t be provided at levels intended to stimulate the economy through business – and especially small business – investment in plant and equipment.  For those seeking more certainty, investing now is the most prudent solution.

The post What the Fiscal Cliff Means for Section 179 appeared first on TEQlease Capital.

If you are also considering acquiring new equipment, and want to conserve available cash, leasing may be an appropriate solution.  However, before finalizing the purchase or lease of needed tree services equipment, I recommend that companies carefully consider the following 12 tips so they don’t make any costly mistakes.

1. Understand your business credit and organize your financial information before contacting an equipment lease financing provider. Make sure you understand your credit score, your business financial picture, and any discrepancies that might be on your personal credit report or Dun & Bradstreet business credit report.
2. Do the math and determine whether the Section 179 deduction and bonus depreciation will benefit your business or not. Section 179 allows businesses to deduct the cost of qualifying businesses equipment placed in service in 2012 up to $125,000. In 2013, the deduction will drop significantly to just $25,000 unless Congress acts.  Also, get advice from your tax advisor about the acquisition.
3. Determine whether equipment purchases should be made in cash, or whether lease financing makes sense to conserve capital.  Do a lease-versus-buy analysis.
4. Don’t assume your bank or the equipment manufacturer’s captive finance company will offer the best terms. The majority of equipment leases are done by equipment lease providers, and often at better pricing. Always compare rates, lease terms, fees and options.
5. Do due diligence on your proposed financing provider. Once you have a short list of providers make sure to check them out thoroughly. Go to Google and run a search on them. Also run a search on social media sites like Twitter. Work only with established financial solution providers.
6. Don’t pay upfront “application” fees to a bank or equipment financing provider.
7. Be prepared to explain in advance any negative business results to a lease financing provider. For example, if you had a business loss in 2010 explain why.  If you recently won a major contract, explain that too, even if the new business hasn’t yet affected your business results.
8. Understand the difference between a Fair Market Value Lease and a $1 Purchase Option Lease. A Fair Market Value (FMV) Lease is one of the most common leases that businesses select because it offers the lowest monthly payments, provides the greatest flexibility at the end of the lease, and may also provide tax incentives. A FMV lease is often used for acquiring technology equipment. On the other hand, a $1 Purchase Option Lease gives businesses the ability to “purchase” equipment for a $1 at the end of a leasing period. The monthly payments are higher than a FMV lease. In addition, you may have additional financial benefits including depreciation and/or interest expense benefits for tax purposes under either scenario.
9. Describe to the equipment lease financing provider how the equipment acquisition will benefit your business. Provide a projection of cost savings or incremental realizable margins if you have one.  Obviously there is a reason why you want to acquire new equipment.  Make sure your equipment lease financing provider understands exactly what this reason is.
10. Consider bundling multiple equipment acquisitions from different vendors under one lease with an independent commercial equipment lessor. Rates tend to be higher for smaller transactions. Bundling equipment acquisitions generally results in lower rates, is simpler to administer and account for, and also minimizes processing fees.
11. Ask your equipment vendor for payment terms so you can defer a portion of the equipment cost, and coordinate deposits, progress payments, and performance retention payments.  Most equipment vendors will ask for a downpayment, with the balance due either at delivery or with ten to thirty days after delivery.
12. Be careful of earnest money payment requests. An earnest money payment is sometimes required equal to a fixed amount or one month’s rent as a refundable application fee. The earnest money payment can be called an application fee, deposit, due diligence fee, etc. If the lease transaction is approved, the earnest money payment is applied to the first or last rental payment due under the lease. If the lessor declines the lease transaction, the earnest money payment is refunded, but sometimes, if specifically agreed in the lease proposal, a small portion of the earnest payment may be retained as an application or processing fee. Not all lessors require an earnest money payment.

The post 12 Recommendations for Leasing Tree Care Equipment appeared first on TEQlease Capital.

Section 179 Deduction. If you own a small or midsize business and acquired assets for your business in 2011, you may be eligible to deduct up to $500,000. For more information about this deduction, you can read our recent post “End of Year Tax Tips” as well as the IRS publication “Bonus Depreciation and Increased Section 179 Deduction under the American Recovery and Reinvestment Act”.

Reinvested Dividends. Although this isn’t a deduction or tax credit, according to Kiplinger this is an “important subtraction that can save you a bundle.” If your mutual fund dividends are automatically used to buy extra shares, your tax basis in the fund is increased with each new reinvestment. Kiplinger advises that investors be careful not to forget including the reinvested dividends in your tax basis—failing to do so may result in double taxation of the dividends.

Additional Bonus Depreciation. If you are a business owner, don’t forget you can write off 100%of qualifying new (not used) assets—including most software, vehicles, and equipment in general.

American Opportunity Credit. Do you have a child in college? Then don’t forget to claim the higher education tax credits. Under the credit, taxpayers can get a reduction in their tax bill of up to $2500 per student provided the tax filers have an adjusted gross incomes of less than $80,000 a year (if single) or $160,000 (if they file jointly). An eligible family with two kids in college could get a tax credit of $5,000. Best part about the credit is that it covers all four years of college. In order to get the credit, you will need to fill out IRS form 8863.The tax credit is set to expire at the end of 2012.

Student Loan Interest.  If you are paying back your child’s student loan, and your child is no longer a dependent, your child is eligible to deduct up to $2500 of student loan interest you paid. However, parents can’t claim the interest deduction since they are not liable for the student loan debt.

Medicare Premiums for Self Employed. If you own your own business and are qualified for Medicare, you can deduct the premiums for Medicare Part B and Medicare Part D as well as supplemental Medicare (medigap) policies. According to Kiplinger, “you can’t claim this deduction if you are eligible to be covered under an employer-subsidized health plan offered by your employer.”

Retirement Accounts. Taxpayers have till April 17, 2012 to set up a new IRA or add to an existing IRA and have it count for your 2011 tax return.

Small Business Health Care Tax Credit. Small businesses that pay at least half of your employees’ health insurance premiums may be eligible for a tax credit of up to 35 percent of the premiums paid. You can find more information at the IRS web site.

The post Eight Overlooked Tax Deductions appeared first on TEQlease Capital.

Below are eight tips for businesses to consider to ensure they don’t make any costly financial mistakes on their equipment purchases:

1.  Do the math and determine whether the Section 179 deduction and bonus depreciation will benefit your business or not. Section 179 depreciation deductions and bonus depreciation are scheduled to be scaled back after this year.  Meet with your tax advisor now and determine whether deferring a purchase may have an adverse tax impact.
2. Don’t make an equipment acquisition decision based entirely on the availability of tax incentives.
3. Understand your credit and organize your financial information before contacting an equipment financing provider. Lease financing appears readily available for equipment acquisitions for the upper tier of creditworthy borrowers, and loan demand for these borrowers is strong.  However, expect the equipment financing provider to require more financial information than in previous years.  Explain in advance any negative results.
4. Describe to the equipment financing provider what this equipment acquisition will do for your business.  Provide a projection of cost savings or incremental realizable margins.
5. Don’t assume your bank or the equipment manufacturer’s captive finance company will offer the best terms.  Compare rates, lease terms, fees and options.
6. Consider bundling multiple equipment acquisitions from different vendors under one lease with an independent commercial equipment lessor. Rates tend to be higher for smaller transactions. Bundling generally results in lower rates, and also minimizes processing fees.
7. Don’t pay upfront “application” fees to an equipment financing provider.  Do due diligence on your financing provider. Use only established providers.
8. Ask your equipment vendor for payment terms so you can defer a portion of the equipment cost, and coordinate deposits, progress payments, and performance retention payments.

If you have any questions regarding equipment leasing please let us know.

The post 8 Equipment Leasing Tips appeared first on TEQlease Capital.

Below are four tips from the above articles we believe are worth investigating.

Section 179 Deductions. According to Bill Bishoff, “For tax years beginning in 2011, eligible small and medium-sized businesses can immediately write off up to $500,000 of qualifying new and used assets—including most software, certain “heavy” vehicles, and equipment in general.”

100% First Year Bonus Depreciation. Bishoff also reports that “for calendar year 2011, business taxpayers can write off the entire cost of qualifying new (not used) assets—including most software, vehicles, and equipment in general.

Assets, for either the Section 179 deductions or first year bonus depreciation, must be placed in service by 12/31/2011 to be eligible, according to Bishoff.

Withholding. The Wall Street Journal recommends that if you received a big refund last year you might consider adjusting your withholding for the rest of the year. Kiplinger offers an easy to use withholding calculator at http://kiplinger.com/tools/withholding/

State sales-tax deduction. According to the Wall Street Journal article, “More Year-End Tax Tips”, the state sales tax deduction benefit ends at the end of 2011. According to the WSJ, the deduction “allows an itemized deduction for state sales taxes in lieu of state and local income taxes. The decision to take it is easy for residents of states without income taxes, such as Texas and Nevada. But it might also work for people in areas with low-income taxes who also had a large purchase such as a car, boat or engagement rings.

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