Section 179 Deduction IRS Tax Code

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As we all know in this business most of us recommend our clients to pay for the use of the technology under a Fair Market Value lease. There are many benefits to this lease structure and is by far the most dominate purchase option in the industry. Use of Section 179 provides a business the ability to fully expense/depreciate the cost of an asset in a given calendar year. In most cases we don't what the customer to own the equipment but if you customer is looking to capture their 179 deduction for 2007 they may be asking for the purchase price of the equipment. (This may be the only time in the year you recommend a $1 purchase option.) Because the intent of a $1 purchase is ownership the IRS gives the lessee the same benefit as if they had purchased the equipment "Depreciation". Your customer can still achieve the benefit of the deduction and you achieve controlling the financial footprint of your devise to some extent. My recommendation is to use a bundled agreement which includes volume and will dramatically improve your ability to defend your customer against a competitor. For the customers that are on the fence call them today and ask if they have taken advantage of their Section 179 deduction and if they have not, do they plan too. Use this questioning to get to the economic buyer and once there its time to "close". Read more about Section 179 on www.bankrate.com
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