Corporate Environments OFDealer Profile

Corporate Environments has been profiled in the January 2010 issue of the OFDealer eZine from OFDA. The article, written by Alicia Ellis, discusses what tools and techniques we are using to expand our products and business offerings to our current and future clients in a down economy. You can read the issue in pdf version here

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Here’s how you may lower your true cost of business equipment: 

Business owners who acquire equipment including machinery, computers, furniture and other tangible goods, usually prefer a substantial deduction in a single tax year, rather than a little at a time over a number of years. This accelerated deduction is known by its section in the tax code: a Section 179 deduction. The 2009 law extends the amount of qualified property that a business can expense under Section 179 to $250,000.This incentive is for equipment placed in service by December 31, 2009 and is designed for small companies, so the deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income).
 
The law also maintains the bonus depreciation of 50% for qualifying assets. This bonus is in addition to regular first-year depreciation.
 
The benefit of a Non-Tax/Capital Lease is that it can take advantage of Section 179: expense up to $250,000 if the equipment is put in use in 2009. In addition, you may depreciate any excess on the depreciation schedule for that asset. Examples of Non-Tax/Capital Leases include a $1.00 Buyout, an Equipment Finance Agreement (EFA), and a 10% Purchase Upon Termination (PUT) Lease. The sample calculation shows how taking advantage of Section 179 can significantly lower the true cost of furniture ownership from $300,000 to $202,000.

For the specific impact to your companys next furniture purchase, please contact your acount representative or call 610-974-7990.

Assume you finance $300,000 worth of new business furniture, put it in use in 2009, and take advantage of Section 179. Your tax savings could be significant:

Furniture Cost Example:  $300,000

1st Year Write Off:  $300,000                                                                   
($250,000 is the maximum Section 179 write-off in 2009)
 
50% Bonus Depreciation:  $250,000                                                       
(On remaining value: $300,000 – $250,000 = $50,000; $50,000 x 50% = $25,000)
 
Normal 1st Year Depreciation:  $5,000                                            
(Depreciation calculated at 5 years = 20%; $25,000 x 20% = $5,000)
 
Total 1st Year Deduction:  280,000                                                        
($250,000 + $25,000 + $5,000 = $280,000)
 
Tax Savings Assuming Rate of 35%:  $98,000                                      
($280,000 x .35 = $98,000)
 
1st Year Net Cost after Tax Savings:  $202,000                                      
($300,000 – $98,000 = $202,000)

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Nicole Martucci - Interior Designer

Corporate Environments is pleased to announce that Nicole Martucci has joined the firm as Interior Designer. Ms Martucci will be providing our clients exceptional design and support services on their projects. Prior to joining Corporate Environments, Ms. Martucci was with PP&L as a designer in their facilities dept.

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