Finance business equipment in 2013
Now is the time to buy business equipment and finance with Banc of America Leasing Benefits of tax leasing equipment in 2013 Acquiring new equipment in 2013 is especially appealing because of available 50% "bonus depreciation" which dramatically reduces taxable income for companies who place equipment in service this year. Will this bonus depreciation benefit create more depreciation than you can utilize on your 2013 tax return? Do you have net operating losses or tax loss carry forwards that mean that your company cannot fully utilize this depreciation benefit? If either answer is yes, consider acquiring your new equipment through a tax oriented lease with Banc of America Leasing. Banc of America Leasing is the largest U.S. bank‐owned equipment financing company.1 The Commercial Equipment Finance team provides customized solutions for equipment acquisitions and/or sale‐leasebacks (refinances), allowing clients to conserve cash and maximize potential tax saving opportunities. Under a tax oriented lease, Commercial Equipment Finance will claim the available bonus depreciation, creating a reduced borrowing cost. By leasing with Commercial Equipment Finance you may lower your cost of capital versus a standard term loan and will pick up the ability to expense lease payments fully on your federal tax return. There is more to tax leasing than just a great borrowing cost. Your monthly payments will be less than those of a term loan of similar tenor, and if you don’t need the equipment at lease end, you can return it without further obligation. Most new equipment types qualify for tax oriented leasing. You should consult your tax advisor to see if tax leasing is right for your business. Equipment Cost $1,000,000 Standard 5‐yr MACRS $200,000 50% Bonus Depreciation in 2013 $600,000 (50% Bonus Depreciation provides an immediate write‐off of half the investment plus normal accelerated rules for the remaining half.)
Favorable financing benefits available through the 4th quarter Due to the 4th quarter tax timing benefits, Banc of America Leasing funds approximately half of its annual volume in the 4th quarter. Below is a sample illustration of the potential implicit rate differential from closing a lease by December 31, 2013 versus after January 1, 2014. December 31, 2013 vs. January 1, 2014 4th Quarter vs. 1st Quarter Financing Resulting Differentials Implicit Lease Rate Advantage Up to 73 basis points based on 5yr term & 5yr MACRS Up to 59 basis points based on 4yr term & 3yr MACRS Take advantage of these benefits today. Don’t run the risk of missing out on these time sensitive opportunities. For more information please contact your Equipment Finance representative or BAL_commercial_equipment_finance@bankofamerica.com. 1 Special Issue 2013 Monitor 100 (June); For informational purposes only. Bank of America, N.A., and Banc of America Leasing do not provide accounting or tax advice to their customers. Customers are urged to consult their own accounting and tax advisor. “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, leasing, equipment finance, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker‐dealers and
members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC
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