The Ultrasound Specialists
**The Leasing Alternative**
Why leasing might be attractive to your practice?

Section 179 Tax Advantages

Under section 179 of the Internal Revenue Service for 2014, the IRS allows a taxpayer to expense up to $25,000.00 of equipment used in trade or business this tax year. Therefore, it is not necessary to depreciate this equipment unless you choose to do so. The full purchase capitalized and depreciated can be used as a direct offset against income up to $25,000.00. This is an opportunity to acquire the equipment you have been waiting for while reducing your taxable income at the same time. This could translate into a tax savings of $8,750.00 assuming the average federal tax bracket of 35%.

I suggest that you contact your tax adviser for a full understanding of this provision in the tax law, since there are some limitations. Assuming an equipment cost as listed below and based on an average federal tax bracket of 35%, the tax savings could be as follows:

$25,000.00 Tax Savings of $8,750.00

Senate Finance committee currently reviewing these reductions from last year. Consult your tax advisor to check on current status.

CARLOS CAPPUCCIO

(800) 887-7111

Disclaimer: Lear Financial Corporation does not provide legal, tax or accounting advice and the
customer is hereby notified that it must seek and rely on advice from its own auditors, accountants, and/or individual council.

Tax Advantages Tax advantages can make leasing less expensive than an outright purchase or bank financing. If you make a purchase before year end, you can take up to a $500,000 deduction under Tax Code 179. Consult with your accountant.
Improved Cash Flow Leasing allows you to pay for the equipment as you use it. Use tomorrow's dollars to create in come for your practice today.
Keeps Credit Lines Open Leasing will not appear on your financial statement as an open debt; This will facilitate your ability to obtain a home mortgage as well as other loans
Protection from Obsolescence In a world of rapidly changing technology, leasing is the conservative way to hedge your bet against investing in technical obsolescence.
Conserves Capital Most businesses prefer to use their valuable capital as an investment in other aspects of their operation.
Flexibility Leasing gives you the opportunity to structure the lease with low monthly payments at lease inception and higher payments later on (graduated payment plan) to conserve working capital. Kind of a pay as you grow option.
100% Financing Most bank loans require a substantial deposit or down payment. Leasing tends finance everything you need, including: shipping, taxes and multi-year maintenance programs.
Longer Terms Many banks only lend money short term, usually 12 to 36 months.
Simpler than Bank Loans Many leasing programs and procedures are specially designed to take the red tape out of financing capital equipment. Simple one page application.
Other things you might want to consider when making your leasing decision.
1. Beware of Evergreen clauses where if you do not notify the company of your intensions to purchase prior to the lease end, they could continue to bill you.
2. Do you have the ability to pre-pay the lease prior to maturity?
3. Is there a grace period on monthly payments?
4. Turnaround time on credit approvals and documentation of leases.
5. Does your leasing company have a proven track record over a period of many years?
6. Will you get personalized service?
Remember a lease can include all equipment including computers, furniture, fixtures, etc. Not just ultrasound or diagnostic equipment. New and pre-owned equipment can be leased by many companies.

CheapUltrasound.com would like to thank Carlos Cappuccio for his insight and information concerning leasing.

Lear Financial Corp.
Carlos Cappuccio - 800 887-7111
Ultrasound Systems
*All systems are quoted with one transducer and most basic configuration. Shipping and appropriate tax will be added to final invoice.
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