Under current IRS guidelines, businesses may deduct up to the allowable annual limit of qualifying equipment purchases in the year the equipment is put into use. This can create substantial tax savings while allowing you to preserve working capital.
Let’s say you are considering new equipment for your business at a cost of $25,000. You don’t want to tie up all of your cash or your lines of credit so you choose financing. You secure financing through Banleaco, take delivery of the equipment and put it into use by July 1st.
Assuming you are in the 21% tax bracket your purchase could save $5,250 in federal taxes. ($25,000 for the equipment x 21% federal tax). Based on a 60 month term, your payments would be $2,892 through the end of the year.
The tax savings cover the payments and!
In this example, the potential tax savings would exceed the payments made during the same period – leaving you nearly $2,400 in your pocket, preserving cash flow, while putting the equipment to work immediately.
This example is for illustrative purposes only. Tax laws and eligibility requirements are subject to change. Please consult your tax advisor regarding your specific situation.
Visit Internal Revenue Service’s Section 179 Deduction to learn more!
Equipment Finance
Estimate how much you could save this year by financing equipment through Banleaco and deducting the full cost under Section 179.
Total purchase price of new or used equipment placed in service this tax year.
Choose the bracket that applies to your business’s federal income, or the closest one to your effective rate if you’re not sure.
Your Estimated Savings
Lowered Cost of Equipment
$0
Equipment cost after your first-year tax savings
2026 limits used above: $2,560,000 maximum Section 179 deduction, with the deduction phasing out dollar-for-dollar once total qualifying purchases exceed $4,090,000 and fully phased out at $6,650,000. 100% bonus depreciation applies to qualifying new and used equipment placed in service after January 19, 2025, under the One Big Beautiful Bill Act.
This calculator is provided for illustrative purposes only and does not constitute tax or legal advice. Limitations and restrictions may apply based on your business structure and total equipment purchases. Please consult your tax advisor or CPA to confirm your actual eligibility and savings before making a purchasing decision. Contact Banleaco to discuss financing your next equipment purchase.