An Operating/Tax lease is an agreement to use or rent the equipment from the Lessor (Makino Capital) for a specified period of time. At the end of the lease agreement, the Lessee (Customer) can then decide if they want to purchase, continue to rent or return the equipment to the Lessor.
This type of lease structure offers significant benefits such as:
• Lower monthly payments
• No down payment
• Potential tax advantages
• Ability to defer the true purchase decision until a specific time in the future
• Match the term of the lease with your customer specific contract term
Our goal is to connect manufacturers with the machine technology they need. With the tax lease program, companies receive state-of-the-art machines with low lease payments, and you can manage risk while staying ahead of the competition.
Businesses that purchase qualifying equipment in 2023 may immediately expense up to $1,160,000 of their new or used equipment costs under extended Section 179 deduction limits established by the American Taxpayer Relief Act. In addition to the immediate expensing allowed under IRC Section 179, businesses acquiring qualifying new** equipment, placed in service during 2023, are allowed to depreciate those costs by utilizing a temporary 80% bonus depreciation allowance as provided through the Tax Cuts and Jobs Act of 2018.
* This information does not constitute tax advice. Consult with your tax advisor to determine how to use equipment financing to take advantage of expensing and depreciation tax savings or visit www.irs.gov for additional information. Section 179 deductions are not automatic and qualifying taxpayers who want to take advantage of the deduction must elect to do so on IRS Form 4562. ** Equipment is considered new if it is placed in service by any business for the first time. Reconditioned equipment can qualify as new if the old or used parts constitute less than 20% of the total cost of the property.
