Financing Available with no money down and no payments for 90 days.
On purchases of our cold laser adaptive equipment you may qualify for section 44 tax credit up to $5000 or qualify for section 179 tax deduction. We work with some of the top financing companies in the US and have provided a lease application form for you to download.
This page provides important educational materials and information about leasing including:
- The top ten reasons to lease
- Tax advantages with equipment leasing
- Tax incentives for Improving Accessibility (this is a very important loophole to pay attention to)
- Return Policy when a leasing company is involved in the purchase
NOTE: A minimum purchase of $1500 is required for leasing or financing
For questions call toll free 1-888-824-7558.
TOP TEN REASONS TO LEASE
1. Low Monthly Payments. Your monthly payment is typically lower than the payment from other methods of financing. You can actually afford more of the best when leasing.
2. Virtually Nothing Down. Where typical financing require a hefty down payment, most lease agreements require an advance of only one or two months’ payment. Leasing puts your equipment to work immediately, at a minimal up-front cost. Bottom line is you can acquire what you need without tying up capital.
3. Protect Your Lines of Credit. Lease payments have no impact on your credit lines with your bank. Your borrowing power is preserved for other business opportunities.
4. Have the Latest and Greatest. Leasing gives you the products you need today. You can move forward to increase sales and grow your business immediately without having lengthy purchase-decision discussions.
5. Eliminate Obsolescence. The newest innovations don’t stay new for very long. If you lease, you position yourself to take advantage of the next big advancement and latest technology.
6. Take Care of “Hidden Costs”. Leasing covers more than just equipment and machine costs. It can also cover the cost of implementation, maintenance, training and support. The leasing solution includes everything it takes to put your equipment to work for you.
7. Realize Tax Advantages. Purchases are made with after-tax dollars. Your monthly lease payments are usually considered a pre-tax business expense, and as such, may reduce your taxes. (As always, consult your tax advisor about tax-related issues.)
8. Simplify Accounting. Lease payments are little more than a line-item in your monthly cost of operations, a minimal bookkeeping effort that frees you from time-consuming depreciation schedules.
9. Guard Against Market Conditions With a Fixed Payment. Remember the 80’s when interest rates sky-rocketed from 9% to 21.5% almost overnight? Unlike bank lines of credit, with variable rates, lease payments are fixed, no matter what happens to the market tomorrow.
10. It’s the New Standard for Financing. Leasing is one of the fastest-growing ways of growing a business today. A recent Gallup survey found that 80% of U.S. businesses lease a portion of their equipment. The list of companies using leasing ranges from Fortune 500 companies to “mom and pop” operations. A growing business is apt to face the dilemma of limited cash flow and the need to add equipment. Leasing can put your equipment to work without a major capital investment and with real cash-flow advantages.
TAX ADVANTAGES WITH EQUIPMENT LEASING
Equipment Leasing Tax Advantages
As of the 2003 calendar year, the program in I.R.S. Section 179 states that entering into a one dollar buyout option lease (Finance Lease) may deduct up to a total of $100,000 from their calendar year 2003 income. As well, your business need not spend $100,000 this year in order to claim the amount, but instead enter into a lease agreement during this calendar year. Leases smaller than 100,000, of course, are eligible for tax deductions on a dollar-for-dollar basis, providing annual deductions do not exceed your total tax liability. Contact us here for more details.
Fair Market Value Leases – 100% Tax Deductible Payments
The key benefit of the Fair Market Lease is that the lessee has the option to return the equipment once the lease concludes, without any further obligation. The other option, of course, is to purchase the equipment for its fair market value, or continue to lease the equipment from the lessor. Using a FMV lease, the equipment is not recorded as an asset, nor does it become a long-term liability, and instead can be treated as an off balance sheet operating expense. Thus, FMV lease payments are 100% deductible.
Accelerate Depreciation With Leasing
When purchasing equipment either through cash, loan or with a finance lease (one dollar option), cash expenses can be recovered by claiming equipment depreciation according to IRS “useful life” rules. In most cases, you can also claim interest portions as expenses as well. This depreciation may last anywhere from five to seven years in this case.
With a Fair Market Lease, you can expense 100% of your equipment during the lease term you select. As an example, a 36 month FMV equipment allows you to write off the full expense of the item within three years, as opposed to its whole value, which could take five years.
Avoiding AMT Double Taxation
With the US Tax Reform Act of 1986, Congress targeted small and medium size businesses that had claimed depreciation on equipment, thus lowering tax liability. In effect, they ensured that companies who use depreciation to greatly lower tax liabilities are subject to review. This review does enable the IRS to classify some depreciation writeoffs as what is known as “tax preferences”, and insist on an additional Alternative Minimum Tax, or AMT. The result is that owning or buying too much equipment can now trigger new taxes!! With equipment leasing, however, payments are for tax reasons the same as a rental fee, and thus do not qualify as tax preferences, and thus are ineligible for AMT.
Tax Incentives for Improving Accessibility
Two tax incentives are available to businesses to help cover the cost of making access improvements. The first is a tax credit that can be used for architectural adaptations, equipment acquisitions, and services such as sign language interpreters. The second is a tax deduction that can be used for architectural or transportation adaptations.
(NOTE: A tax credit is subtracted from your tax liability after you calculate your taxes, while a tax deduction is subtracted from your total income before taxes, to establish your taxable income.)
The tax credit, established under Section 44 of the Internal Revenue Code, was created in 1990 specifically to help small businesses cover ADA-related eligible access expenditures. A business that for the previous tax year had either revenues of $1,000,000 or less or 30 or fewer full-time workers may take advantage of this credit. The credit can be used to cover a variety of expenditures, including:
- provision of readers for customers or employees with visual disabilities
- provision of sign language interpreters
- purchase of adaptive equipment
- production of accessible formats of printed materials (i.e., Braille, large print, audio tape, computer diskette)
- removal of architectural barriers in facilities or vehicles (alterations must comply with applicable accessibility standards)
- fees for consulting services (under certain circumstances)
Note that the credit cannot be used for the costs of new construction. It can be used only for adaptations to existing facilities that are required to comply with the ADA.
The amount of the tax credit is equal to 50% of the eligible access expenditures in a year, up to a maximum expenditure of $10,250. There is no credit for the first $250 of expenditures. The maximum tax credit, therefore, is $5,000.
The above information relates to possible tax scenarios. An accountant or financial advisor should be consulted to realize the full tax potential and to insure eligibility.
Return Policy when a leasing company is involved
With the leasing and/or financing of equipment, an independant third party is involved in the purchase. Health Is Wealth Maui LLC is in no way affiliated with any leasing/financing companies and consequently, if you choose to purchase equipment by signing a leasing or financing contract from a separate and independent leasing company, there will be NO money back guarantee available on any products purchased.