Yes, equipment leased under a capital lease structure is eligible for Section 179 deductions.

Examples of capital leases are leases with a fixed purchase option like a $1.00 buyout or PUT (Purchase Upon termination), which is pre-stated purchase option expressed as a percentage of the property’s original purchase price.

Businesses may find that the lease payments in the first year are less than the tax benefits created through the Section 179 deduction so that the initial tax saving is greater than the lease payments made to the lessor.

For additional information or to get started with a Section 179 Deduction you can contact the experts at Encore Leasing Group, LLC.

Tangible personal property is any tangible property that is not real property. It includes the following property.

-Machinery and equipment

-Off-the-shelf computer software placed in service during the tax year is qualifying property for purposes of the section 179 deduction.

-Property contained in or attached to a building (other than structural components), such as refrigerators, grocery store counters, office equipment, printing presses, testing equipment, and signs

-Gasoline storage tanks and pumps at retail service stations

-Livestock, including horses, cattle, hogs, sheep, goats, and mink & other furbearing animals

For businesses more than three years old and looking to finance more than $20,000 of new equipment or software, here are the simple steps you need to follow:

1. Contact Encore to obtain a lease proposal for the property that you are interested in.

2. Complete and submit a credit application with requested information.

3. Credit is evaluated and upon credit approval your lease paperwork is generated.

4. Upon Encore's receipt of all executed paperwork in satisfactory form and condition, purchase orders will be issued and executed.

5. Payment is made when equipment is delivered, accepted by lessee, and invoiced by vendor.