Equipment Leasing Tax Advantages*

Liberty Leasing Services, Inc. can create lease financing solutions that may allow you the opportunity to take advantage of the available  tax deductions for leased equipment under the current statutes of the Internal Revenue Code. Depending on your individual circumstances and the advice from your financial advisor we can structure a lease to capture tax benefits such as:

100% Tax Deductible Payments

Liberty Leasing Services, Inc. can structure a lease financing solution that can qualify as an operating lease for accounting purpose and meet the guidelines as a tax lease under the revenue rulings of the Internal Revenue Code. Based on the specific advice of your financial advisor, you may be able to deduct 100% of the lease payment from your book and taxable income as an operating expense.

Accelerate Depreciation with Lease Financing

Liberty Leasing Services, Inc. can structure a lease financing solution that can qualify as a capital lease for accounting purposes and meet the guidelines for a non-tax lease under the revenue rulings of the Internal Revenue Code. Based on the specific advice of your financial advisor, you may be able to elect Section 179 treatment and be eligible to deduct up to $112,000 of the equipment cost as a deduction from your 2007 taxable income.

Avoiding the Alternative Minimum Tax (AMT) Double Taxation

With the US Tax Reform Act of 1986, Congress targeted businesses that had claimed excessive depreciation deductions on equipment to reduce their current tax liability.  As a result of this tax reform, excessive depreciation expense deductions can be classified as a  "tax preference" item resulting in the alternative minimum tax calculation and resulting liability. The bottom line is ownership of assets can increase your tax liability.  With a properly structured tax lease from Liberty Leasing Services, Inc. you may be able to deduct your entire lease payment and avoid the potential "tax preference" item from excessive depreciation deductions.



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* Always consult with your financial advisor for specifics related to your individual circumstances.