Masonry Magazine December 2008 Page. 39
Real, long-term savings come from a reduced tax bill. The best way to reduce that tax bill, especially in 2008, is with year-end equipment acquisitions. Qualified leasehold property purchased and placed in service during 2008.
Borrow or lease: Will the new equipment be purchased with borrowed funds? Or, would it be more advantageous for the masonry operation to lease? Leasing might mean losing the tax benefits of first-year, Section 179 write-offs as well as the 50 percent bonus depreciation allowance. Instead, the business gets an immediate tax deduction for all lease payments. Also, remember that under some circumstances, and with certain types of equipment, the full amount of the equipment purchase may be deducted in the first year.
The cost-reducing tax advantages under either the financing or the leasing option depend heavily on the situations of both the masonry business and its owner. By no means, however, should the decision be based solely on the first-year, out-of-pocket outlays. Whether the masonry operation will benefit from newly acquired equipment at year-end, or whether it will have the profits to take full advantage of year-end tax breaks and afford the out-of-pocket expenditures necessary to buy or lease that equipment, will only become apparent as the end of the tax year approaches.
Upfront/Out-of-pocket: With a loan, a typical down payment is usually required. Most lenders ask for at least 10 percent or more of the purchase price as a down payment, although some lenders may require more. However, when planning a year-end equipment acquisition via the purchase route, why not investigate seller-provided financing? A large, institutional lender is financing those purchases based on the masonry contractor or business' financial history and prospects. Should the operation fail to repay the borrowed funds, the financial institution would, of
Pre-Formed Flashing
No job site cutting, bending or forming saves time and money. Corners, drip edge, end dams and mechanically keyed flashing offer the perfect fit without the extra work. Aesthetically appealing, durable and simple to use. The beautiful way to maintain a watertight environment.
Control & Expansion Joints
Control expansion, contraction and cost with durable, long-lasting joint products from Sandell. Efficiently seals joints and allows expansion or contraction of concrete or masonry. Easy-to-install backer rod, cork, rebonded rubber, neoprene, polyethylene foam and PVC or rubber control joint.
Air-Tight™ System
Seal the deal on long-term reliability and code compliance. Air-Tight Self-Adhesive Membrane wraps the structure to create an effective barrier against air, moisture, pollutants and other suspended particulates. Air-Tight Liquid seals the exterior surface against water in a variety of applications including wood, metal, concrete and sheeting. Applies with brush, squeegee or spray. Dries in 15 minutes, cures within 24 hours.